Hexatronic Group Ab · OMXSTO:HTRO
Hexatronic Group Ab — Q4 2024 Earnings Presentation
30 slides from Hexatronic Group Ab's earnings presentation, Feb 7, 2025
Slide 1: Q4 2024 Presentation
Q4 2024 Presentation A yn Ie February 7, 2025 one Pernilla Lindén Martin Aberg CFO Deputy CEO 4exatronic
Slide 2: Agenda
Q4 2024 Presentation Agenda Hexatronic at a glance Q4 highlights Financial overview Business overview Summary and market outlook Q&A Pa ON = 4exatronic
Slide 3: Hexatronic at a glance
Hexatronic at a glance }4exatronic
Slide 4: Expanding market for fiber optic infrastructure
Q4 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
Q4 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
Q4 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 U
Slide 7: US fiber demand expected to grow 10% per year 2024-2030
Q4 2024 Presentation US fiber demand expected to grow 10% per year 2024-2030 according to industry organizations US optical cable demand by funding source, million fiber kilometers and % share governmental funding 200 180 160 26% 140 120 10% 100 80 60 40 20 ie} 2023 2024 2025 2026 2027 2028 2029 @ P
Slide 8: Hexatronic enables non-stop connectivity for communities worldwide
Q4 2024 Presentation -4exatronic Hexatronic enables non-stop connectivity for communities worldwide Proven track record of organic growth and solid profitability SEK 7.6bn 33% 106% Sales, R12* 5-year sales CAGR* EBITA margin, R12* SEK 0.8bn 43% ~2,000 EBITA, R12* -5-year EBITA CAGR* Employees * As p
Slide 9: Q4 highlights
Q4 highlights
Slide 10: Stable end to the year and strong cash flow
Q4 2024 Presentation Stable end to the year and strong cash flow Financial highlights + Net sales decreased by 2% to SEK 1,824m in Q4 2024 compared to last year, primarily due to Harsh Environment having a record quarter in Q4 2023. + Fiber Solutions is back on growth, driven by higher sales in Euro
Slide 11: Events
Q4 2024 Presentation Events * On October 1,we completed the acquisition of parts of Icelandic Endor. The acquisition will further broaden our offering in the data center market, add new expertise, and strengthen our customer base and presence in Iceland, Sweden, and Germany. * On October 15, our new
Slide 12: Introduction of new segment reporting from Q1 2025
Q4 2024 Presentation Introduction of new segment reporting from Q1 2025 Summary + The current focus areas will evolve into three business areas — Fiber Solutions, Harsh Environment and Data Center. + Further focuses our growth strategy for the coming years and contributes to clarity and transparency
Slide 13: Addressing several customer needs creates additional growth avenues
Q4 2024 Presentation Addressing several customer needs creates additional growth avenues and diversification 72 %* 15% 13 %* Fiber solutions Engineered Essential services + | for connected solutions for and solutions for societies challenging datacénters— . conditions H) : “ae TH 7 +e Fiber Solution
Slide 14: Sales and earnings growth during 2019-2024
Q4 2024 Presentation Sales and earnings growth during 2019-2024 Net sales development EBITA development EPS development Net sales (SEKm) EBITA (SEKm) / EBITA% Earnings per share after dilution (SEK) 43% *CAGR 33% S&% *CAGR 16.6% CAGR 8150 15.1% 7581 6574 113% y 08% 10,6% 7a% yos0 1284 38947 3492 803
Slide 15: Financial overview
Financial overview }4exatronic
Slide 16: Stable end to the year
Q4 2024 Presentation Stable end to the year EBITA Bridge » 7 (SEKm) 45 22 ; ——— Netsales ee Organic Growth 170 182 Gross Margin 414% 404% 418% 43,0% EBITA 182 170 Th 803 1234 -35% EBITA Margin 3 911% 3 18.1% 4-23 Sales Margin Opex Depreciation Q4-24 Net sales Q4: Sales decreased by 2% compared to la
Slide 17: Strong operating cash flow and cash conversion of 150%
Q4 2024 Presentation Strong operating cash flow and cash conversion of 150% | . ; . Investments are in the latter part of Cash equivalent bridge Continued good cash conversion the cycle SEKm Operating cash flow after WC changes (SEKm), % of Capex investments (SEKm), % of net sales Cash flow from ope
Slide 18: Continued reduced net debt and good financial flexibility
Q4 2024 Presentation Continued reduced net debt and good financial flexibility Net debt decreased by SEK 49m compared to the previous quarter, leverage affected by higher EBITDA in Q4 Continued solid financial position Net debt (SEKm) / EBITDA proforma incl. IFRS 16* Net debt as of Q4 2024 (SEKm) Le
Slide 19: Business overview
Business overview }4exatronic
Slide 20: Performance by focus area
Q4 2024 Presentation Performance by focus area Fiber Solutions - return to growth due to higher sales in Europe and APAC Net sales, SEKm 6602 5510 1290 1320 942023 942024 YTD 2023 YTD 2024 Harsh Environment - capitalizing on trends within defense and energy Net sales, SEKm 729 339 272 Q4.2023 942024
Slide 21: Europe (excl. Sweden)
Q4 2024 Presentation % of Group revenue (R12) xatronic Europe (excl. Sweden) 45% Returned to sales growth in Fiber Solutions Business development + Sales increased 6% in the fourth quarter driven by higher sales in Fiber Solutions and Harsh Environment + Fiber Solutions successfully secured new busi
Slide 22: North America
Q4 2024 Presentation % of Group revenue (R12) North America =) Lower sales in Q4 due to strong comparable numbers, positioned for long-term growth Business development Net sales and net sales growth + Sales decreased 13%, as fourth quarter last year was record [1842¢)j12994)[159%4 f104%|73% | 58% |
Slide 23: Sweden
Q4 2024 Presentation Sweden Stable Fiber Solutions market Business development + Sales decreased by 12% in Q4 compared to last year. Last year’s sales were positively impacted by a large submarine cable project. + Sales in Sweden, excluding the submarine cable project, showed good growth Market deve
Slide 24: APAC
Q4 2024 Presentation APAC Strong performance in stable Fiber Solutions markets Business development + Sales increased by 19%, primarily driven by a large order in Micronesia and higher sales in Australia. Market development + Ingeneral, stable development. Digitalization is driving demand for fiber
Slide 25: Summary and market outlook
Summary and market outlook }4exatronic
Slide 26: Summary
Q4 2024 Presentation Summary Stable ending of 2024 - net sales decreased by 2% to SEK 1,824m in Q4 2024 primarily due to Harsh Environment having a record quarter in Q4 2023. EBITA margin of 10.0%, up from 9.1% in Q4 2023 (adj. EBITA- margin 10.7% in Q4 2023). Internal efficiency improvements and go
Slide 27: Market outlook
Q4 2024 Presentation Market outlook + Cautiously optimistic about 2025 Fiber Solutions market - Signs of increased activity in the markets, although the price pressure seen last year is likely to remain - Uncertainty due to geopolitical factors - Very limited exposure if US tariffs will be imposed -
Slide 28: Q&A
Q&A
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