HAKI Safety (HAKI) investor relations material

Executive summary

• Q3 net sales rose 8% YoY to SEK 311M, but organic sales fell 4%; adjusted EBITA declined to SEK 14M from SEK 24M.

• Nine-month sales increased 10% to SEK 960M, with 6% organic growth; adjusted EBITA was SEK 54M versus SEK 50M.

• Combisafe’s acquisition expanded fall-protection offerings and European reach, while integration and restructuring weighed on Q3 earnings.

Financial highlights

• Q3 gross profit was SEK 118M (107M) and gross margin was 37.9% (37.2%); net result was SEK 28M (32M).

• Q3 operating profit reached SEK 37M (30M), including SEK 26M of net positive items affecting comparability; adjusted EBITA was SEK 14M (24M).

• Q1–Q3 operating profit was SEK 66M (50M), net result SEK 42M (29M), and EPS SEK 1.41 (0.97).

• Operating cash flow was SEK 3M (1M) in Q3 and SEK 74M (21M) in Q1–Q3.

Outlook and guidance

• Updated targets: annual growth above 10% over a business cycle; adjusted EBITA margin of 10% short-to-medium term and above 12% medium-to-long term.

• Financial net debt to adjusted EBITDA should be below 2.5x, though it may be temporarily exceeded, including due to acquisitions.

• Combisafe and UK fall-protection integration is expected to weigh on Q4 before completion; management sees future profitable-growth potential as markets improve.