Slide 1: Q1 2024 Presentation
Q1 2024 Presentation April 26, 2024 Henrik Larsson Lyon Pernilla Lindén Martin Åberg CEO CFO Deputy CEO
Slide 2: Agenda
Q1 2024 Presentation Agenda 1. Hexatronic at a glance 2. Q1 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
Q1 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 techn
Slide 5: Several government initiatives across strategic growth markets with low fiber penetration rates
Q1 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 6: Hexatronic enables non-stop connectivity for communities worldwide
Q1 2024 Presentation Hexatronic enables non-stop connectivity for communities worldwide Proven track record of organic growth and solid profitability 7.8 BSEK 36% 13.3% Sales, R12* 5-year sales CAGR* EBITA margin, R12* 1.0 BSEK 55% ~2,000 EBITA, R12* 5-year EBITA CAGR* Employees * As per the end of
Slide 7: Addressing several customer needs creates additional growth avenues and diversification
Q1 2024 Presentation Addressing several customer needs creates additional growth avenues and diversification 71 %* 15 % 14 % Fiber solutions for Engineered solutions High-density solutions connected societies for harsh environments for data centers Share of group sales, Q1 2024 * Including indicativ
Slide 8: Q1 highlights
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Slide 9: Continued strong operating cash flow and contribution from new focus areas
Q1 2024 Presentation Continued strong operating cash flow and contribution from new focus areas Financial highlights • Net sales decreased 16% to MSEK 1,782 YoY and 4% QoQ. • Negative organic growth of 27% due to softer market in Fiber Solutions. Comparison also impacted by a very strong Q1 2023 (ne
Slide 10: Significant events
Q1 2024 Presentation Significant events • Hexatronic merges its two Swedish wholly-owned subsidiaries, Hexatronic Cable & Interconnect Systems and Hexatronic Fiberoptic, forming Hexatronic Sweden. • The Nomination Committee propose Magnus Nicolin for election as Chairman of the Board at the Annual G
Slide 11: Strong five-year track record of net sales and profitability growth
Q1 2024 Presentation Strong five-year track record of net sales and profitability growth Net sales development EBITA development EPS development Net sales (MSEK) EBITA (MSEK) / EBITA% Earnings per share after dilution (SEK) 55% 9 000 1 400 18% CAGR 8 000 36% 16,6% 16% 1 200 15,1% CAGR 8 150 64% 7 00
Slide 12: Financial highlights
Financial highlights 12
Slide 13: EBITA margin in line with Q4 2023
Q1 2024 Presentation EBITA margin in line with Q4 2023 January-March EBITA Bridge Q1 Q1 (MSEK) 2024 2023 ∆% Net sales 1 782 2 115 -16% Organic Growth -27% Gross Margin 40,5% 44,7% EBITA 168 365 -54% EBITA Margin 9,4% 17,2% Net sales Q1: Sales development of -16% (-4% compared to last quarter) • Orga
Slide 14: Continued strong operational cash flow
Q1 2024 Presentation Continued strong operational cash flow Continued strong cash conversion Investments are in the latter part Cash flow bridge due to reduced working capital of the cycle MSEK Operating cash flow after WC changes (MSEK), % of Capex investments (MSEK), % of net sales Cash flow from
Slide 15: Continued financial flexibility
Q1 2024 Presentation Continued financial flexibility Net debt in line with previous quarter with leverage ratio effected by strong profitability in Q1 2023 Net debt (incl. IFRS 16) as of Q1 2024 Net debt (MSEK) / EBITDA proforma incl. IFRS 16* MSEK Leverage ratio excl. lease 3 500 liabilities at 2 7
Slide 16: Business overview
Business overview 16
Slide 17: Performance by focus area
Q1 2024 Presentation Performance by focus area Fiber Solutions – continuing to Harsh Environment – capitalizing on Data Center – organic growth driven navigate through a softer market trends within defense and energy by hyperscale buildout Net sales, MSEK Net sales, MSEK Net sales, MSEK 1 881 256 1
Slide 18: Sales decline in Europe (excl. Sweden) partly mitigated by expansion in new focus areas
Q1 2024 Presentation % of Group revenue (R12) Sales decline in Europe (excl. Sweden) 46% partly mitigated by expansion in new focus areas Business development Net sales and net sales growth • Sales decline compared to corresponding period last year due 1 200,0 127% 122% 83% 60% 55% 47% 19% 0% -21% 0
Slide 19: Continued initiatives to position the company for long-term growth in North America
Q1 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 8% mainly due to decreased sales of duct, partly 184% 129% 159% 104% 73% 58% 4% 15% -8% 800 0%
Slide 20: Weaker FTTH market in Sweden impacted sales growth
Q1 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 8% driven by softer FTTH market. 22% 64% 45% 11% 15% -28% -15% -19% -8% 0% 250,0 Market development 200,0 -10000% • Higher
Slide 21: APAC performance lower due to submarine cable in Q1 2023
Q1 2024 Presentation % of Group revenue (R12) APAC performance lower due to 8% submarine cable in Q1 2023 Business development Net sales and net sales growth • Sales decline of 25% primarily explained by a delivery of a 200,0 117% 114% 22% -13% 20% 7% 34% 12% -25% 180,0 0% submarine cable to South K
Slide 22: Summary and Market outlook
Summary and Market outlook 22
Slide 23: Summary
Q1 2024 Presentation Summary • Strong cash flow development driven by reduced working capital. • Continued diversification through Harsh Environment and Data Center mitigated current conditions within Fiber Solutions. • Net sales primarily impacted by continued challenging conditions within Fiber So
Slide 24: Market outlook
Q1 2024 Presentation Market outlook • We expect a strong market within Harsh Environment and Data Center for 2024 and beyond, fuelled by investments in defence, energy, and AI. • In Fiber Solutions we expect the market to remain weak in the coming quarters and then a gradual increase in demand in th
Slide 25: Q&A
dexatronic Q&A
Slide 26: Q1 2024 Presentation
Q1 2024 Presentation 26
Slide 27: AAS
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