HANZA launches new strategy and raised financial targets

HANZA AB (publ) has fulfilled the strategy from 2018, "HANZA 2022", during which the company has more than doubled its sales and increased profits fivefold. Now the strategy for the coming years, "HANZA 2025" is launched, including new financial targets with the aim of growing sales to over SEK 5 billion, and doubling its profits

"The fact that we are again setting aggressive growth targets is partly due to a good historical performance and partly to a successful business model that encompasses advisory services, product development and a wide range of manufacturing technologies. We also see a structural tailwind for our concept as the manufacturing landscape is increasingly changing towards regional manufacturing, backsourcing, i.e. manufacturing closer to the end customer," says Erik Stenfors, CEO."

The previous strategy, "HANZA 2022", included a listing on Nasdaq Stockholm's main list, the establishment of a new manufacturing cluster in Germany and a few carefully selected acquisitions. Despite unexpected world events such as the pandemic, the strategy has been completed and HANZA is now launching a strategy for the coming years, "HANZA 2025".

Due to the strong market demand, as well as the performance benefits the Group's cluster concept brings when scaled up, the Board has deemed it appropriate to expand and raise the Group's financial targets as follows: 

• • Growth: Sales of at least SEK 5 billion by 2025.
    Previous: Average sales growth of at least 10% per year over a business cycle
  • Profitability: Operating margin (EBITA) of at least 8% by the end of 2025.
    Previous: Average operating margin (EBIT) of at least 6% over a business cycle
  • Capital structure: An equity ratio of at least 30%.
    Unchanged target
  • Debt: Net interest-bearing debt/EBITDA must not exceed 2.5.
    New target defined as net interest-bearing debt at the end of the period divided by
    EBITDA rolling 12 months
  • Dividend policy: The annual dividend shall be equal to 30% of the profit after tax, taking into account the financial position of the company.
    Unchanged policy

"HANZA has a long-term perspective and we are developing the Group methodically, step by step. This has given us high credibility with continuous growth and increased profitability. Now that we have reached our goal with HANZA 2022, we are setting our sights on the future with HANZA 2025, where we intend to grow the Group's turnover significantly, to over SEK 5 billion with continued profitability growth."

This disclosure contains information that HANZA AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on November 8 2022 at 07:15 am.

For further information please contact:
Erik Stenfors, CEO, Tel: +46-709 50 80 70, e-mail: erik.stenfors@hanza.com
Lars Åkerblom, CFO, Tel: +46-707 94 98 78, e-mail: lars.akerblom@hanza.com

Important information This press release may contain certain forward-looking statements that reflect HANZA’s current views of future events and financial and operational performance. Words such as "intends", "anticipates", "expects", "may", "plan ", "anticipate" or similar expressions regarding indications or predictions of future developments or trends, and are not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking statements are not guarantees regarding future results or developments and actual results may differ materially from those set forth in forward-looking information.

About HANZA:

HANZA is a global knowledge-based manufacturing company that modernizes and streamlines the manufacturing industry. Through supply-chain advisory services and with production facilities grouped into regional manufacturing clusters, we create stable deliveries, increased profitability and an environmentally friendly manufacturing process for our customers. The company was founded in 2008 and in 2021 had sales exceeding SEK 2.5 billion. The company has six manufacturing clusters: Sweden, Finland, Germany, Baltics, Central Europe and China. Among HANZA's clients are leading companies such as 3M, ABB, Epiroc, GE, Getinge, John Deere, Saab, Sandvik, Siemens and Tomra.

HANZA is listed on Nasdaq Stockholm's main list (ticker: HANZA).

For more information please visit: www.hanza.com