Slide 1: Q3 2024 Presentation
Q3 2024 Presentation A yn Ie October 25, 2024. one Pernilla Lindén Martin Aberg CFO Deputy CEO 4exatronic
Slide 2: Agenda
Q3 2024 Presentation Agenda Hexatronic at a glance Q3 highlights Financial overview Business overview Summary and market outlook Q&A Pa ON = 4exatronic
Slide 3: Hexatronic at a glance
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Slide 4: Expanding market for fiber optic infrastructure
Q3 2024 Presentation Expanding market for fiber optic infrastructure Reliable network is a 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
Q3 2024 Presentation Sustai nability is hig h Priority targets based on our 2030 roadmap on our agenda ¢ Climate-neutral operations ¢ 100% equal pay e Min. 40% gender equality (all employees) Planet We reduce our environmental impact and contribute to a circular economy. For present and future gener
Slide 6: Several government initiatives across strategic growth markets
Q3 2024 Presentation Several government initiatives across strategic growth markets with low fiber penetration rates Penetration rates (subscribers / no. of homes) ‘September 2023 Germany EE 10% 9x Swedish households Austria Italy UK 1% 16% [17% 6x Swedish households Indonesia Philippines Australia
Slide 7: Hexatronic enables non-stop connectivity for communities worldwide
Q3 2024 Presentation Hexatronic enables non-stop connectivity for communities worldwide Proven track record of organic growth and solid profitability SEK 7.6bn 33% 10.4% Sales, R12* 5-year sales CAGR* EBITA margin, R12* SEK 0.8bn 43% ~2,000 EBITA, R12* -5-year EBITA CAGR* Employees * As per the end
Slide 8: Addressing several customer needs creates additional growth avenues
Q3 2024 Presentation Addressing several customer needs creates additional growth avenues and diversification TA % 14. %« Fiber solutions Engineered Essential services } for connected solutions for and solutions for societies challenging ¢ conditions Fiber Solutions *Share of group sales, Q3 2024 4ex
Slide 9: Q3 highlights
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Slide 10: Sequentially improved profitability and solid cash flow
Q3 2024 Presentation Sequentially improved profitability and solid cash flow Financial highlights + Net sales growth of 2% to SEK 1,951m in Q3 2024 compared to last year driven by higher sales in Fiber Solutions in North America and in our new focus areas. * Continued weak demand in Fiber Solutions
Slide 11: Events
Q3 2024 Presentation Events * On September 17, CEO Henrik Larsson Lyon announced that he had decided to step down as President and CEO of Hexatronic after more than ten years in the position. The Board has initiated the recruitment of a new CEO. Henrik Larsson Lyon will remain in his role as Preside
Slide 12: Net sales and EBITA margin development
1 400 18% 16,6% 16% 1 200 15,1% 14% 1 000 13,3% 12% 11,3% 11,3% 800 9,8% 10,4% 10% 600 1 234 8% 7,2% 7,4% 1 090 1 037 6% 400 855 790 4% 200 394 2% 115 136 205 0 0% FY FY FY FY FY FY LTM Q1 LTM Q2 LTM Q3 2018 2019 2020 2021 2022 2023 2024
Slide 13: Financial overview
Slide 14: Sequentially improved profitability
Q3 2024 Presentation Sequentially improved profitability July-September - aa: ae EBITA Bridge (SEKm) —~pm Netsales 1951 1917 z E <a Organic Growth -2% Gross Margin 43.1% 42.4% AN9% 43.7% EEITA 22 296 22% ai) 1.065 _-42% 3-23 Sales Margin Opex Depreciation _Q3-24 EBITA Margin 11.8% 15.4% 10.8% 16.9%
Slide 15: Cash flow development
250 9,2% 10% 8,8% 9% 7,6% 200 8% 6,6% 6,0% 7% 150 6% 4,7% 3,9% 5% 3,6% 3,8% 100 198 4% 164 3% 131 126 126 50 95 2% 68 68 77 1% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024
Slide 16: Continued reduced net debt and good financial flexibility
Q3 2024 Presentation Continued reduced net debt and good financial flexibility Net debt decreased by SEK 85m compared to the previous quarter, leverage ratio affected by lower EBITDA in Q3 Continued solid financial position Net debt (SEKm) / EBITDA proforma incl. IFRS 16* Net debt as of Q3 2024 (SEK
Slide 17: Business overview
Slide 18: Fiber Solutions - slightly better in the US, still weak markets in Europe
Q3 2024 Presentation Fiber Solutions - slightly better in the US, still weak markets in Europe Net sales, SEKm 1516 1446 Q32023 932024 YTD 2023 YTD 2024 Performance by focus area Harsh Environment - capitalizing on trends within defense and energy Net sales, SEKm Gis 828 390 185 ae) 932023 932024 YT
Slide 19: Europe (excl. Sweden)
Q3 2024 Presentation Europe (excl. Sweden) Sales decline partly mitigated by expansion in new focus areas Business development + Slight decline of sales compared to corresponding period last year due to softer development within Fiber Solutions. * Decline primarily due to Germany and UK. * Continued
Slide 20: North America
Q3 2024 Presentation North America Slight increase in demand in Q3, positioned for long-term growth Business development + Sales grew 13%, driven by higher organic sales in FTTH systems in the US and acquisition-driven growth in Data Center. + Our duct sales in BDI were slightly lower than last year
Slide 21: Sweden
Q3 2024 Presentation Sweden Stable FTTH market Business development + Sales decreased by 11% in Q3 compared to last year. Last year’s sales were positively affected by a submarine cable project. Market development + Relatively stable FTTH market. % of Group revenue (R12) 2% 4 Net sales and net sales
Slide 22: APAC
Q3 2024 Presentation APAC Stable performance, softer FTTH market in several countries Business development + Sales declined by 7%, primarily explained by lower sales in Australia and New Zealand, and that Q3 2023 included a project delivery of a submarine cable. Market development + Higher cost of c
Slide 23: Summary and market outlook
Summary and market
Slide 24: Summary
Q3 2024 Presentation Summary Net sales grew 2% to SEK 1,951m in Q3, primarily driven by higher sales in Fiber Solutions in North America and in our new focus areas. Continued weak demand in Fiber Solutions in Europe and prevailing price pressure. Profitability improved in Q3 compared with the previo
Slide 25: Market outlook
Q3 2024 Presentation Market outlook + Areturn to seasonal variations in Fiber Solutions, with lower activity in the fourth and first quarter. - Cautiously positive for next year and see signs of improved markets in several countries. - The BEAD program in the US is expected to start reaching the mar
Slide 26: Q&A
Q&A
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