annual general meeting - hanza group

1 [namnet på presentationen]1 (10) AGM May 10th 2017

Annual General Meeting

May 10th, 2017

Review by

Erik Stenfors, CEO

Lars Åkerblom, CFO


AGENDA

• About HANZA

• Fiscal Year 2016 and Q1/17

• The Future

• Q&A

HANZA completes “Phase 2”… …and initiates “Phase 3”


May 10th, 2017

Review by

Erik Stenfors, CEO

Lars Åkerblom, CFO


Electronic Boards

Sub-assembly

Cable Harnesses

Sheet metal Mechanics

Machining

The Product Company

Contract Manufacturers ("Legotillverkare")

Different Locations, Different Technologies

http://www.fullappliances.com/pic/big/229_0.jpg

http://yorkshirelaser.co.uk/interface/fabrication/afm_ep_14_large.jpg

http://www.google.se/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=VQu0D18dvpcBjM&tbnid=jC1wPn2_9A90oM:&ved=0CAUQjRw&url=http://www.metal-wares.com/parts01.html&ei=gkn2U5-aNc314QSxkICgAg&psig=AFQjCNFkODL-fF_YIaS1hUpGOnnbHqOAXw&ust=1408735954912059

http://image.thefabricator.com/a/discovering-the-best-path-to-better-bending-bending-automation.jpg

http://egov.eletsonline.com/wp-content/uploads/2014/07/electronics-manufacturing.jpg

http://jyinschina.en.made-in-china.com/product/goJxINQAuhkT/China-LCD-Programmable-Intelligent-Digital-Meter-JYK-42Y-.html


Electronic Boards

Sub-assembly

Cable Harnesses

Sheet metal Mechanics

Machining

The Product Company

Contract Manufacturers ("Legotillverkare")

Different Locations, Different Technologies

VISIONTo be a unique Value AddingBusiness Partner in Manufacturing

http://www.fullappliances.com/pic/big/229_0.jpg

http://yorkshirelaser.co.uk/interface/fabrication/afm_ep_14_large.jpg

http://www.google.se/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=VQu0D18dvpcBjM&tbnid=jC1wPn2_9A90oM:&ved=0CAUQjRw&url=http://www.metal-wares.com/parts01.html&ei=gkn2U5-aNc314QSxkICgAg&psig=AFQjCNFkODL-fF_YIaS1hUpGOnnbHqOAXw&ust=1408735954912059

http://image.thefabricator.com/a/discovering-the-best-path-to-better-bending-bending-automation.jpg

http://egov.eletsonline.com/wp-content/uploads/2014/07/electronics-manufacturing.jpg

http://jyinschina.en.made-in-china.com/product/goJxINQAuhkT/China-LCD-Programmable-Intelligent-Digital-Meter-JYK-42Y-.html

5 [namnet på presentationen]

MachiningMilling, turning, grinding, EDM etc.

Sheet MetalCutting, bending, welding, painting etc.

PCB AssemblySurface mount, PTH, soldering etc.

Cable HarnessesWire-cutting, printing, crimping etc.

AssemblySub-assembly, test, final assembly, packing, shipping, after-market

1 (10) AGM May 10th 2017

“Phase 1”: Create a Complete Manufacturer

http://www.hanza.com/

6 [namnet på presentationen]5 (10)

20132009

Four-leaf clover➢ Cable Harnesses➢ Electronics➢ Machining ➢ Sheet metal mechanics

PHASE 1 – Manufacturing Technologies

AGM May 10th 2017

HANZA y. 2009-2013

From AGM, May 27th, 2013:



Conventional Supply Chain Modern Solution

A MIGTM Analysis(Manufacturing Solutions for

Increased Growth and Earnings)

AGM May 10th 2017

“Phase 2”: The need for Advisory Services


20132009 2017

Cluster

PHASE 1 – Manufacturing Technologies PHASE 2 – Clusters & Advisory Services

AGM May 10th 2017

Material Compliance Solutions

HANZA y. 2014-2016

Four-leaf clover➢ Cable Harnesses➢ Electronics➢ Machining ➢ Sheet metal mechanics



AGENDA

• About HANZA


• The Future

• Q&A


May 10th, 2017

Review by

Erik Stenfors, CEO

Lars Åkerblom, CFO

10 [namnet på presentationen] AGM May 10th 20175 (10)

“Phase 2”: Challenge and Corrective Actions

➢ Challenge, autumn 2014Key customers are experiencing substantial volume decline in fall 2014, resulting in negative development of sales/EBIT

➢ Action Jan/15: Launching Frontrunnera) Accelerate Cluster creationb) Broaden owner-base c) Strategic acquisition to support Finland/technologies

➢ 2016: Completion of FrontrunnerTotal 6 factories divested/merged during 18 months

➢ Q1/17: Finalize lease agreement Vaasa, FinlandLast step, Frontrunner closed!

11 [namnet på presentationen] AGM May 10th 2017

Five HANZA ClustersAnnual Sales 1.3 bn. SEK, 1 400 employees

Manufacturing Technologies: PCBA, cable harnesses, turning, sheet metal mechanics, milling, heavy mechanics, surface

treatment, powder coating, welding, assembly, testing, etc.

HANZA 8 yearsThe Cluster Footprint


HANZA 8 yearsFrom the customer portfolio


➢ HANZA “CORE”Cluster Operational Excellence – Trimming the clusters

➢ HANZA UnitedDevelopment inside HANZA, culture, work safety etc.

➢ Sales focus model Focus on the existing customers, increasing value add

AGM May 10th 2017

HANZA 8 yearsFocus Areas


• Chairman: Mikael Smedeby, Managing Partner Advokatfirma Lindahl

• Listing: Nasdaq First North Premier. Share price y-y: +62 % [May 9th, 2016: 7.15 SEK. May 9th 2017: 11.55 SEK]

• Main owners

• Investor group PHI, approx. 30 %, represented by Francesco Franzé and Håkan Halén

• Gerald Engström, founder and main owner Systemair AB, approx. 16 % (nominated to be elected as Board member)

AGM May 10th 20178 (10)

Francesco FranzéVP Husqvarna Group

Håkan HalénVP/CFO Hexagon 2001-2013

HANZA 8 yearsThe main Owners

Gerald EngströmFounder Systemair AB

http://www.google.se/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.husqvarnagroup.com/en/people/management/511&ei=Ka9RVYuNEsmOsgGbmoHYCQ&bvm=bv.92885102,d.bGg&psig=AFQjCNH6461ez4MVwMTD9ltPzucJ9xko-g&ust=1431503015792678


(MSEK) FY

2016

FY

2015

Sales 1 306 1 206

EBITDA 72,7 90,6

EBIT 25,2 51,1

OTC -9,0 40,4

Adj. EBIT 34,2 10,7

Cash-flow from

operations 41,6 5,0

9 (10)

Financial KPI (MSEK) 31.12

2016

31.12

2015

Net assets 756 776

Equity 269 254

Equity/Asset ratio 36% 33%

Net debt 226 244

HANZA 8 yearsFinancial summary 2016

• Sales growth of 8,3 %

• Frontrunner affected the sales volumes, when sites were moved and customer exchanged. Metalliset is consolidated as of September 2015

• Reduction of Net debt and improved Equity to Asset ratio

• OTC is connected to Frontrunner and in 2016 the acquisition of Metalliset


P&L (MSEK) Q1 -17 Q1 -16 Q4 - 16

Sales 350,0 338,6 328,9

EBITDA 20,0 24,4 11,6

EBIT from operations 13,1 15,9 6,4

One time cost -3,9 -1,4 -6,8

EBIT from operations, net 9,2 14,5 -0,3

Business development -0,8 -2,0 -0,7

EBIT total 8,4 12,5 -1,0

• Sales growth of 3.3%. This is a sum of organic growth of approx. 16%,and reduced volumes in ”Frontrunner” of approx. -13%

• OTC is connected with the closure/transfer of production in Vaasa

• Operational EBIT-margin in Electronics is 7.8% and Mechanics 1.4%

Q1, 2017


• Clusters leads to a reduction of working capital

• Low investments as a result of Frontrunner/Clusters (sale of excess machinery etc.)

Cash flow (MSEK) Q1 - 17 Q1 - 16 FY

2016

Cash flow from operations, before change of WC 13,1 13,3 39,0

Change of working capital 20,0 -7,6 2,6

Investments, net 3,3 0,3 0,3

Cash flow after investments 36,4 6,0 41,9

Change of loans -18,5 -32,7 -58,8

New share issue - - -0,2

Cash flow, net 17,9 -26,7 -26,1

Cash at end of period 42,2 21,8 24,1

AGM May 10th 2017

Q1, 2017


• Conversion of convertible loan reduces net debt and increases equity with 14 MSEK

• Lowering of working capital has reduced net debt further

• These KPIs will continue to be in focus

KPI (MSEK) Mar 17 Mar 16 Dec 16

Total assets 766,3 766,8 755,6

Equity 286,0 262,2 268,8

Equity/Asset ratio 37,3% 34,2% 35,6%

Net interest bearing debt 175,2 250,6 226,7

Gearing 0,6 1,0 0,8

AGM May 10th 2017

Q1, 2017


AGENDA

• About HANZA


• The Future

• Q&A


May 10th, 2017

Review by

Erik Stenfors, CEO

Lars Åkerblom, CFO


Customer Value

Contract ManufacturersManufacturer of certain part according to specifications

Complete ManufacturingResponsible for supply/cost of the finished products

Manufacturing SolutionsStrategic Advice and Execution of Manufacturing-Chain-optimization

AGM May 10th 2017

HANZA “Phase 3”

Continuing the set pathPhase 3 is about continuing to build on the created foundation by possibly complementing with new manufacturing technologies or advisory services


annual general meeting - hanza group

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