Prepared in accordance with
International Financial Reporting Standards
as adopted by the European Union
together with independent auditors’ report*
CONSOLIDATED AND
PARENT COMPANY’S
ANNUAL REPORT FOR
THE YEAR ENDED
31 DECEMBER 2021
UNIFIED REGISTRATION
NUMBER 40003454390
* This version of financial statements is a translation from the original, which was prepared in the Latvian
language. All possible care has been taken to ensure that the translation is an accurate representation of
the original. However, in all matters of interpretation of information, views or opinions, the original
language version of financial statements takes precedence over this translation
General information 3
Statement of comprehensive income
38
Statement of financial position
39
Statement of cash flows
40
Statement of changes in equity
42
Notes to the financial statements
43
Other information
45
123
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
2
Content
Statement of Management’s Responsibility
23
Management report
11
Non-financial report
Name of the Parent
Company
Legal statuss of the Parent
Company
Registration number of the
Parent Company
Place and date
Registration in the Commercial
Register
Registered office of the
Parent Company
Major shareholders
(over 5%)
as at 31 December 2021
(end of the day)
Subsidiaries
Independent auditor and certified
auditor name and address
Financial year
HansaMatrix
40003454390
Riga, 30 July 1999
Riga, 27 December 2022
• SIA „MACRO RIGA” (30,57%)
• „ZGI-4” AIF, KS (15,06%)
• KS „BaltCap Latvia Venture Capital Fund” (9,95%)
• KS „FlyCap Investment Fund I AIF” (8,89%)
• Funds managed by IPAS „ CBL Asset Management” (6,56%)
• Funds managed by Swedbank Investeerimisfondid AS (5,41%)
• Funds managed by Swedbank Investment Management
Company AS (5,10%)
• SIA „HansaMatrix Ventspils” (100%)
• SIA „HansaMatrix Innovation” (100%)
• SIA „HansaMatrix Pārogre” (100%)
• SIA „Zinātnes Parks” (100%)
• Lightspace Holding AS (participation 100% of voting shares)
SIA „Deloitte Audits Latvia”
Grēdu iela 4A, Rīga
Latvia, LV-1019
License No 43
Inguna Staša
Latvian Certified Auditor
Certificate No 145
1 January – 31 December 2021
3
General information
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Address by the
Chairman of
the Baord
Chairman of the Board
JĀNIS SAMS
For all of us, 2021 was challenging year we passed
in shadow of continuing pandemic. Besides
operational difficulties, HansaMatrix faced great
opportunities like entering new business segments
and geographies. Through all the year our team
has demonstrated our values by staying safe,
delivering expected customer experience and
ensuring solid financial performance. We strongly
believe in our 5-year company strategy successful
execution.
4
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Jānis Sams
CHAIRMAN OF THE BOARD
OF THE PARENT COMPANY
Date of appointment:
17 May 2021
• HansaMatrix Parogre, SIA. – Member of the
Board
• HansaMatrix Ventspils, SIA – Member of the
Board
• Latvian Electrical Engineering and Electronics
Industry Association – Member of the Board
• LightSpace Technologies, SIA – Member of the
Supervisory Board
Number of shares owned: 0
Number of share options held: 2400 (as of
31.03.2022.)
Participation in other companies: no participation
Prior to joining HansaMatrix, Jānis Sams' professional
activity for 12 years has been related to the production
of electronics, holding the position of head of
functions in international companies. In addition,
Jānis currently serves on the Board of the Latvian
Electrical Engineering and Electronics Industry
Association. He holds a Master's Degree in
Comprehensive Quality Management from the Riga
Technical University, as well as an engineering degree
in production automation.
Vitauts Galvanausks
MEMBER OF THE
MANAGEMENT BOARD AND
OGRE PLANT MANAGER
Positions held in other companies:
Number of shares owned: 0
Number of share options held: 1200 (as of
31.03.2022)
Member of the Board Vitauts Galvanausks joined
HansaMatrix in January 2021 and holds the position
of manager of Parogre factory. He has more than 10
years of previous experience in various production
management positions, responsible for improvements
in quality, processes and efficiency, operational
performance of companies. Vitauts Galvanausks was
responsible for the implementation of operational
excellence processes in the Consolis group of
companies, as well as acting as the manager of the
Consolis factory in Latvia. Vitauts Galvanausks holds
a Bachelor's Degree in Communication Science from
the University of Latvia.
The Management Board is a collegial executive body entrusted with the management of the AS
HansaMatrix’s (hereinafter – Company) business. Its members are elected by the Supervisory Board,
which also elects one member of the Management Board to act as its Chairperson. In accordance with
the Articles of Association of the Company, members of the Management Board are elected for an
indefinite period.
In accordance with the Articles of Association of the Company, Chairperson of the Management Board
has a right to represent the Company as a sole representative when entering into relationships with third
parties or it can be done by two members of the Management Board acting jointly.
At the reporting date, Management Board of the Company was composed of four members - Chairperson
of the Board and three Board Member.
5
Management Board
AS “HansaMatrix”
Unified registration
number: 40003454390
Date of appointment:
17 May 2021
Positions held in other companies:
• HansaMatrix Parogre, SIA - Member of the Board
Consolidated and
Parent Company’s
Annual Report 2021
Gatis Grava
MEMBER OF THE
MANAGEMENT BOARD AND
VENTSPILS PLANT
MANAGER
Positions held in other companies:
• HansaMatrix Ventspils, SIA - valdes loceklis
Number of shares owned: 0
Number of share options held: 1200 (as of 31.03.2022)
Member of the Board Gatis Grava has been working
with HansaMatrix since March 2020 and holds the
position of Ventspils factory manager. Gatis Grava has
more than 14 years of professional work experience in
Schneider Electric group companies in Europe, various
management positions, procurement, supplier
strategic development management, as well as
developing supply chains in Scandinavia and Eastern
Europe. Gatis Grava holds an engineering degree from
Riga Technical University.
Māris Macijevskis
MEMBER OF THE
MANAGEMENT BOARD AND
FINANCE DIRECTOR OF THE
GROUP
Date of appointment:
16 Feburary 2018
Positions held in other companies:
• Zinātnes parks, SIA – Member of the Board
• HansaMatrix Innovation, SIA – Member of the Board
• IQ Capital, SIA – Member of the Board
• Latvian Squash Federation, Society – Chairman of
the Board
• FTG, SIA – Member of the Board
• Road Traffic Safety Directorate, VAS – Member of
the Council
Number of shares owned: 300
Number of Share options owned: 3500 (as of 31.03.2022 )
Participation in other companies:
• IQ Capital SIA (100%)
• FTG, SIA (33.33%)
Māris Macijevskis has been working for the Group
since 2017. Māris' previous experience has been
related to the banking sector for 15 years, and he has
been the head of the Large Business Service
Division/Directorate at AS Citadele banka. Māris
Macijevskis holds a Bachelor's Degree in Economics
and Business Administration from the Stockholm
School of Economics in Riga, a Master's Degree in
International Economics from the University of Latvia
and a CFA (Certified Financial Analyst) certificate.
Valde
Changes in the Management Board of the Company
On May 17, 2021, Jānis Sams, the former operational manager and Member of the Board, was
appointed Chairman of the Board of HansaMatrix. Ilmārs Osmanis, the former Chairman of the
Board and founder of HansaMatrix, left the Board to join the Supervisory Board of Parent Company.
Along with the changes in the composition of HansaMatrix's board, two new board members have
been appointed – Gatis Grava, Ventspils Plant manager, and Vitauts Galvanausks, Ogre Plant
manager. Māris Macijevskis continues his work on the board and as Chief Financial Officer of the
Company.
6
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Date of appointment:
17 May 2021
Positions held in other companies:
• Lightspace Holding AS – Chairwoman of the Supervisory Board
• Stockholm School of Economics in Riga, Foundation – Member of the Board
• Novatore, SIA – Member of the Board
• RFactor, SIA - Member of the Board
• Coffee Address Holding, SIA - Member of the Council
• Gren Holding Company – Member of the Council
Participation in other companies:
• RFactor, SIA (100%)
Baiba Anda Rubesa is an experienced international company manager with extensive experience in corporate
governance, leadership skills and sustainability requirements and a significant addition to the Company’s Management
Board in the areas of management, leadership and public relations, acting as an independent member of the Supervisory
Board.
Rubesa works as a consultant and has been appointed to the Council of Stockholm School of Economics in Riga since
2019. From 2016 to 2019, Baiba Rubesa was a member of the Human Resources Committee of the Supervisory Board of
the Latvian electricity company Latvenergo. From 2015 to 2018, Baiba Rubesa was the Chairman of the Board and
executive director of the joint venture RB Rail, which implements the largest railway infrastructure project in the European
Union Rail Baltica in the Baltics. Since 2014, she has been the owner of the consulting company RFactor. Prior to that, she
held the position of Vice President of Corporate Social Responsibility at Statoil ASA from 2010-2013, and from 2008 to
2010 Baiba Rubesa was director of Statoil Azerbaijan for cooperation with state institutions. From 2011 to 2013, Baiba
Rubesa was a member of the Board of the EITI (Extractive Industries Transparency Initiative) and from 2012 to 2015 – a
member of the Supervisory Board of Citadele banka. From 2004 to 2007, Baiba Rubesa chaired the Foreign Investors
Council in Latvia, as well as was vice-president of the Latvian Chamber of Commerce and Industry in Latvia, and from
2002 to 2009 Baiba Rubesa was on the Supervisory Board of DnB Nord Bank. Prior to that, from 2001 to 2008, Baiba
Rubesa was the Executive Director of Statoil Latvia, and from 1996 to 2000 - Director of Marketing and Public Relations
at Statoil Baltic States.
Supervisory Board
The Supervisory Board of the Company is a collegial body exercising supervision over the key activities of
the Company and, where appropriate, decision making by the Management Board. At the reporting date,
the Supervisory Board consisted of five members, elected at the shareholders’ meeting for the maximum
term of office of five years. The members of the Supervisory Board elect from amongst themselves the
Chairperson and one Deputy Chairperson of the Supervisory Board.
At the reporting date, the Company’s Supervisory Board was composed of five members: Chairperson,
Deputy Chairperson and three members of the Supervisory Board.
7
Baiba Anda Rubesa
CHAIRWOMAN OF THE COUNCIL OF THE PARENT COMPANY
Appointment date: 26 May 2021
Term of office: 25 May 2026
Number of shares owned: 0
Baiba Rubesa is an independent member of the Council.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Supervisory Council
Ingrīda Blūma
DEPUTY CHAIRWOMAN OF
SUPERVISORY BOARD OF
THE COMPANY
Anders Lennart Borg
MEMBER OF SUPERVISORY
BOARD OF THE COMPANY
8
AS “HansaMatrix”
Unified registration
number: 40003454390
Appointment date: 26 May 2021
Term of office: 25 May 2026
Number of shares owned: 0
Ingrīda Blūma is an independent member of the
Supervisory Board.
Positions held in other companies:
• RĪGAS PIENA KOMBINĀTS, AS – Member of the
Council
• i-bloom, SIA – Member of the Board
• PN Project, AS – Member of the Council
Participation in other companies:
• i-bloom, SIA (100%)
Ingrīda Blūma holds a Master's Degree in Social
Sciences from Stockholm University in Sweden. She
has additionally studied in the INSEAD program
"Advanced Management", as well as in strategic
management and leadership training courses at the
European Bank for Reconstruction and Development
(EBRD).
Ingrīds previous work experience is related to the
banking sector, where she has worked for more than
20 years. Working for Swedbank AS (formerly AS
Hansabanka) as Chairwoman of the Board, Ingrīda
Blūma has gained unique business experience in the
banking industry and corporate business
environment. Under her leadership, AS "Hansabanka"
became the largest bank in Latvia. Ingrīda Blūma has
also been a member of the supervisory board of SIA
Primekss, Pure Food SIA. and URSA Bank AS.
Appointment date: 26 May 2021
Term of office: 25 May 2026
Number of shares owned: 0
Anders Lennart Borg is an independent member of
the Supervisory Board.
Anders Lennart Borg is an experienced professional
in the electronics industry. Graduated from Linkoping
University in Sweden and is endowed with extensive
knowledge in engineering. His long work experience
has allowed him to develop strong leadership skills.
For 11 years he worked at the electronics
manufacturing plant Eljo AB in Sweden, of which he
was its director for almost five years. Later, for 5
years he managed Schneider Electric electronics
factory in Latvia and for another 5 years the same
company's factory in Sweden.
Consolidated and
Parent Company’s
Annual Report 2021
Supervisory Council
Dagnis Dreimanis
MEMBER OF SUPERVISORY
BOARD OF THE COMPANY
Normunds Igolnieks
On May 26, 2021, at the annual meeting of HansaMatrix shareholders, a new Supervisory board was elected, in
which, in addition to the previous members of the Supervisory board Ingrīda Blūma, Dagnis Dreimanis, Normunds
Igolnieks and Baiba Anda Rubesa, the founder of HansaMatrix, Ilmārs Osmanis, as well as the member of the
Supervisory board Anders Lennart Borg were elected. Baiba Rubesa has been confirmed as the Chairwoman of the
HansaMatrix Supervisory Board, while Ingrīda Blūma will continue to serve as deputy Chairwoman of the Supervisory
Board. Andris Bērziņš, who was an independent member of the Supervisory Board and served on the HansaMatrix
Supervisory Board since October 07, 2015 and was Chairman of the Supervisory Board since April 04, 2018, has left
the Supervisory Board of the HansaMatrix.
On 13 September 2021, the founder of HansaMatrix Ilmārs Osmanis resigned from his position as a member of the
HansaMatrix Supervisory Board. Ilmārs Osmanis has worked in the Supervisory Board of HansaMatrix since May 26,
2021, and until then he has been Chairman of the Board for many years. From now on, he will remain a significant
shareholder in HansaMatrix and will advise the Company's management if necessary. Chairwoman of the
Supervisory Board Baiba Rubesa, Deputy Chairwoman of the Council Ingrīda Blūma, Supervisory members Anders
Lennart Borg, Dagnis Dreimanis and Normunds Igolnieks continue their work in the HansaMatrix Supervisory Board.
9
Appointment date: 26 May 2021
Term of office: 25 May 2026
Appointment date: 26 May 2021
Term of office: 25 May 2026
Changes in the Supervisory Board of the Company
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
MEMBER OF SUPERVISORY
BOARD OF THE COMPANY
Number of shares owned: 0
Dagnis Dreimanis represents the interests of minority
institutional shareholders and the interests of BaltCap
investment fund in SIA Lightspace Technologies.
Positions held in other companies:
• DD Ventures SIA, Member of the Board
• UPRENT group, SIA - Member of the Council
• Vika Wood, Ltd, Member of the Council
• BaltCap AIFM SIA, Chairman of the Board
• SOLVINA AS, Member of the Board
• Latvian Capital Ventures SIA, Member of the Board
• Coffee Address Holding, LTD, Member of the
Council
Participation in other companies:
• DD Ventures SIA (100%)
• Latvian Capital Ventures SIA (57.5%)
Dagnis Dreimanis is an investment professional with 18
years of experience. He has managed investments in
more than 20 companies in a broad range of industries.
Dagnis holds a bachelor's degree in business
administration from Slippery Rock University in
Pennsylvania and is a CFA charter holder. He holds a
dual EMBA degree from the University of California Los
Angeles / National University of Singapore (2016) and
has completed the Professional Board Member
Education program at the Baltic Institute of Corporate
Governance.
Represents 275 562 shares owned by ZGI-4, venture
growth capital fund managed by ZGI Capital-4.
Number of shares owned: 0
Positions held in other companies:
• Marupes Metālmeistars, SIA – Chairman of the
Council
• ZGI Capital, SIA alternative fund manager –
Chairman of the Board
• I factor, SIA - Member of the Board
• eAgronom – Member of the Council
Participation in other companies:
• ZGI Capital, SIA alternative fund manager (26%)
• I factor, SIA (100%)
Normunds Igolnieks has been Chairman of the board and
partner of ZGI Capital since 2011, which is one of the
most experienced venture capital fund managers in the
Baltics. From 2001 to 2011, Normunds Igolnieks was
Chairman of the Board of the asset management
company SEB Investment Management, as well as held
several other positions related to the financial sector.
Information on shares and dividends
Information about the shares of the Parent Company:
Ratios are explained in the Note “Definitions of alternative performance measures” under the section “Other information”.
ISIN code LV0000101590
Listed Nasdaq Riga Baltic Main List
Exchange code HMX1R
Type of shares 100% ordinary shares
Rights attached to the
shares
Right to receive dividends, receipt of liquidation quota and voting
rights at the general meeting
Rights resulting from one share One share has 1 vote
Nominal value share 1 EUR
Total number of shares 1 829381
Number of sharesholders 1 132 of 31 December 2021
Dividends per share
Dividends/Normalized earnings
in 2021 0.03 EUR from retained earnings of previous years
P/E ratio
-8.53 (31 December 2021)
As at 31 December 2021 (end of the day), the following
were the major shareholders of the Company:
10
Major shareholders
(above 5%)
Number of shares
and votes
Equity interest
SIA “Macro Riga” 559 282 30.57%
"ZGI-4" AIF KS 275 562 15.06%
KS “BaltCap Latvia Venture Capital Fund” 182 000 9.95%
KS “FlyCap Investment Fund I AIF” 162 632 8.89%
Funds managed by IPAS "CBL Asset Management" 120 000 6.56%
Funds managed by AS “Swedbank Investeerimisfondid” 99 038 5.41%
Funds managed by AS "Swedbank Ieguldījumu Pārvaldes Sabiedrība" 93 369 5.10%
Other (below 5%) 337 498 18.45%
TOTAL: 1 829 381 100.00%
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
5.65% (31 December 2021)
Joint Stock Company "HansaMatrix" (hereinafter – HansaMatrix or Parent Company) is one of the
leading electronic system products developer and manufacturer in the Baltic States, listed on Nasdaq
Baltic's main list. HansaMatrix Group (hereinafter referred to as Group) includes the following 100%
subsidiaries of HansaMatrix:
The Parent Company is active in industrial systems, data network infrastructure, the Internet of Things,
as well as medical, and several other B2B (business-to-business) market sectors. HansaMatrix actively
develops knowledge-based business, product development competencies, engineering teams and
creates an innovation platform for future business development. HansaMatrix has 22-years of
experience in the electronics manufacturing industry, and its business mission is to develop world-
class technology products and to assist its customers be competitive on global markets.
Management
report
Introduction
SIA
Hansamatrix
Pārogre
11
SIA
Hansamatrix
Ventspils
SIA
Hansamatrix
Innovation
SIA
Zinātnes
parks
AS
Lightspace
Holding
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
In order to reduce the shortage of components, HansaMatrix diversifies its supplier base, applies
an alternative component management approach, cooperates with component brokers and more
timely purchases of production components for binding customer orders
Business environment
12
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
The demand for data transmission network products and industrial products is stable and growing, which ensures high
availability of production orders for these products.
The shortage of semiconductor production capacity continues to play a key role in hampering
business development, which still determines extended delivery times for most semiconductor
components used in the production of electronic systems. According to Deloitte's 2022
semiconductor industry research, the global semiconductor shortage is expected to continue until
the first half of 2022, anticipating an improvement in the situation in the second half of 2022, but
some components will have long delivery deadlines, with this situation prolonged and continuing
into 2023 (https://bit.ly/3HSlbxJ).
In addition to the risk of the supply chain of the electronics sector, which may result in longer delivery terms, increase in
component prices and a more pronounced semiconductor deficit, the recent and current Russian-Ukrainian conflict has
increased, which may prolong and/or make the supply of electronic components from Asia to Europe more expensive,
with transport companies using alternative means of delivery of components, ship or aircraft transport, instead of rail
transport through the territory of Russia. In addition, there are two neon gas plants on the territory of Ukraine, which
produce about 50% of the neon gas used in the production of semiconductors. Long-term disruptions in the operation of
these plants may exacerbate the global component deficit, in the event that Ukrainian neon production capacities are
not compensated by producers from other countries.
In 2021, there was a upward trend in inflation, which is facilitated, among other things, by the significant rise in the
prices of energy resources (electricity and gas) in Europe in 2021 Q3 and Q4, as well as by the increasing trend of the
average wage in Latvia. Considering that Russia and Ukraine and Belarus are countries rich in both energy resources,
raw materials and also food resources, under the influence of the Conflict and under the influence of Western
sanctions against Russia and Belarus, a trend in resource prices is expected also in 2022. The combination of these
factors with the shortage of electronic components and price increases could necessitate adjustments to the prices of
manufacturing services in order to maintain the level of profitability. The global COVID-19 pandemic remains a major
public health burden worldwide. Although milder forms of viruses are now common, they still have an impact on the
business environment with employee availability and supply chain problems. As long as the pandemic is not fully
controlled, the situation can change rapidly, so an active monitoring and rapid response approach is crucial for the
successful management of the business environment and supply chain disruptions. Looking ahead, the Group's
management expects a new business trend in economic processes as technologies increasingly enter the economic
processes (more data bandwidth, more robotics and automation, more remote work, greater EU independence in
manufacturing), recovering from the COVID-19 pandemic and preparing for higher market demand and faster business
growth thereafter.
Performance of the Group
In 2021, HansaMatrix Group's revenue from contracts with
customers (hereinafter – revenue, sales or turnover) amounted to
EUR 21.96 million, decreasing by 2.77% compared to 2020
revenue of EUR 22.59 million.
In the reporting period, EBITDA amounted to EUR 3,732 million,
which is a 23% increase compared to EUR 3,034 million 2020. The
Group's net profit was negative at EUR 1.952 million compared to
the net loss of EUR 0.847 million in 2020.
For a better comparison of interim profitability, the Group calculates normalized profit, which in 2021 amounted to EUR
0.928 million and was 107% higher than the corresponding indicator for 2020 of EUR 0.449 million.
The Group's revenue decline is explained by the global shortage of electronic components. In the 1st half of 2021, the
Group very successfully managed the risks of global component shortages and supply chains and achieved very good
results, whereas in the second half of 2021 the availability of semiconductors had a significant impact on the Group's
financial results, however, the group's EBITDA growth in 2021 is a good performance and is explained by a relatively
higher proportion of high value-added products and increasing demand in the data network and industrial sector.
The Group's net profit in 2021 was negatively affected by a number of non-cash flow
positions, including changes in the fair value of investment in SIA Zinātnes parks, losses on
investments in associates, changes in the fair value of the EIB guarantee and EIB loan, as
well as interest expenses related to the lease.
The significant losses of 2021 are mainly due to the Group's assessment of the recoverable value for investments in SIA
Zinātnes Parks of EUR 1,358 million due to the significantly increased construction costs of new industrial objects in
2021, due to a loss from the associated company SIA Lightspace Technologies, which are recognized in the Group's
2021 statement of comprehensive income of EUR 0.837 million and in addition to the Group's fair value revaluation of
convertible guarantee securities issued in connection with the European Investment Bank (EIB) financing agreement due
to the drop in HansaMatrix's weighted average stock market price, reducing the book value of the convertible guarantee
securities. Overall, in 2021, the fair value of the above-mentioned security increased by EUR 0.228 million, reducing the
Group's net profit accordingly.
The explanation of the indicators referred to in this section is available in the section Other information "Definitions of
alternative performance measures".
2020
13
2021
22,59 million
EUR
21,96 million
EUR
3,034 million
EUR
3,732 million
EUR
2020
2021
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Performance of Parent Company
Performance of the associated company
14
The Parent Company closed the year 2021 with a net turnover
of EUR 21.36 million, which is 0.13% less than in EUR 21.39
million in the previous period.
During the reporting period, EBITDA amounted to EUR 1,877 million,
with an increase of EUR 60.15%, compared to EUR 1.172 million in
2020; net profit was negative and amounted to EUR 1,453 million
compared to the net loss of EUR 0.656 million in 2020. In 2021, the
increased losses are mainly due to provisions by reviewing the fair
value of HansaMatrix investments and loans to SIA Zinātnes Parks.
In 2021, the consolidated, unaudited revenue of SIA Lightspace Technologies amounted to EUR 0.70
million (EUR 0.52 million in 2020) and the reporting year was completed at a net loss of EUR 1,64
million compared to the net loss result of EUR 1.24 million in 2020. As at 31 December 2021, Lightspace
Technologies had total assets of EUR 11.6 million compared to EUR 10,8 million EUR at the end of the
previous reporting year.
SIA Lightspace Technologies will cover the losses of the reporting period and previous periods by
attracting new investments for products development and ensuring profit in the future.
2020
2021
21,39 million
EUR
21,36 million
EUR
1,172 million
EUR
1,877 million
EUR
2020
2021
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Regional sales dynamics compared to 2020 – Baltic sales in the 12 months of 2021 have increased by 15%, Nordic
sales have increased by 19%, the rest of the EU* sales show a 50% decrease, changes in sales outside the EU* show a
34% decrease.
* according to United Kingdom's withdrawal from the EU, the breakdown of three customers into regions from the ‘Rest
of the EU’ to 'Non-EU' has been reclassified, also adjusting historical data accordingly.
Group revenue from contracts with customers in the reporting period
Group’s revenue, th EUR 2017 2018 2019 2020 2021
Baltic region 9125 9 462 10 355 9 890 11376
Nordic 5238 5 841 6 348 5 007 5942
Other EU countries* 4679 5 777 6 315 2 681 1353
Outside the EU* 608 508 1 593 5 011 3292
In 2021,
turnover growth
was observed in
the Baltic and
Nordic countries,
and revenue in
all other
geographical
regions
decreased.
15
(hereinafter –
revenue, sales or
turnover)
Nordic countries
27%
Non-EU
15%
Other EU
6%
HansaMatrix's
majority of
revenue from
contracts with
customers
Baltics
52%
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
HansaMatrix's revenue is generated in the following five main market sectors:
Data network infrastructure products Internet of Things
Industrial products optics and photonics products
and other products. In Q1 2019, the Company started to report revenue from a new market sector, namely optics and
photonics products, by separating it from that of the other products market sectors. In previous years, sales results by
market sectors have been restated by separating the optics and photonics sector from other products revenue.
Two largest sectors of the market in 2021 were data network infrastructure clients and industrial clients. Revenue in each
of these sectors accounted for 52% and 31% of total turnover, respectively. The data network infrastructure market sector
showed a slight increase of 13%, and in the internet sector of devices revenue also increased by 62%. In 2021, revenue of
industrial products, optics and photonics and other product sectors decreased by 22%, 7% and 45%, respectively,
compared to 2020.
Group’s revenue, th EUR 2017 2018 2019 2020 2021
Data network infrastructure 10 191 9 884 9 788 10 060 11 383
Internet of Things 1 075 1 314 1 686 1 117 1 803
Industrial products 6 737 7 462 9 856 8 777 6 841
Optics and photonics products 707 1 429 2 153 1 272 1 187
Other products 940 1498 1 128 1 364 748
Group revenue geography, th EUR
€ 12000
€ 10000
€ 8 000
€ 6 000
€ 4 000
€ 2 000
€ -
Baltic countries
Nordic countries Other EU
Outside EU
2017 2018 2019 2020 2021
16
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Group revenue by market sector, th EUR
Investment
€ 12000
€ 10000
€ 8 000
€ 6 000
€ 4 000
€ 2 000
€ -
Data networks Internet of Things Industrial
Other
2017 2018 2019 2020 2021
17
In 2021, investments of EUR 1.121 million were made in production and research fixed assets for
maintaining and increasing production capacity, developing test systems and developing the IT systems.
During the reporting period, HansaMatrix continued the implementation of the project No. 1.2.1.4/16/A/021
"Development of experimental production of 3D volumetric imaging equipment and its components" of the
Specific Objective 1.2.1 "Increase private sector investment in R&D" of the Operational Program "Growth and
Job". The total eligible costs of the project and the ERDF amount to EUR 2.9 million. Planned ERDF funding
35% of the total eligible costs.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Optics and Photonics
SIA Lightspace Technologies is a 3D photonics and optical solutions company that has become a global technology
leader in the development of AR VR multi focal heads, as well as future 3D image display technologies, with applications
in medicine, science, defense industry, as well as in the fields of gaming, entertainment and multi-media.
In 2021 HansaMatrix has not made additional investments in SIA Lightspace Technologies, but a convertible loan of EUR
4.96 million to SIA Lightspace Technologies was completely converted.
On 15 November 2021, Lightspace Technologies, increased its share capital by issuing 9,168 new shares. After the
increase of the Company's share capital, its share capital is EUR 25 769 and consists of 25 769 capital shares.
The share capital was increased by the largest shareholder HansaMatrix, by making a contribution in kind in the form of
an existing convertible loan of EUR 4,96 million, thus acquiring all the new shares.
On 27 December 2021, HansaMatrix founded AS LIGHTSPACE Holding, investing in its equity all 17,445 or 67.7% of
Lightspace Technologies' shares with a value of 8,672 thousand. EUR.
The division of the share capital of Lightspace Technologies is as follows: 67,70 % in AS Lightspace holding; 17,44 % KS
BaltCap Latvia Venture Capital Fund AIF KOM; 8.23 % Ilmārs Osmanis; 5,03 % KS AIF Imprimatur Capital Technology
Venture Fund KOM; 1,61 % KS AIF Imprimatur Capital Seed Fund KOM.
At the end of the reporting period, the investments of the 100% owned subsidiary AS Lightspace holding by the Parent
Company amounted to EUR 8 672 thousand investment in SIA Lightspace Technologies, which consisted of paid capital.
At the end of the reporting period, the value of the Group's assets related to investments in SIA Lightspace Technologies
amounted to EUR 6 128 thousand paid capital (for consolidation using the equity method).
Investments in associates
Investments in subsidiaries
18
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
SIA Zinātnes Parks develops an industrial real estate
project, located in the Riga Airport area.
In 2021 HansaMatrix made an additional EUR 356
thousand in the form of an investment in the form of a
convertible loan to SIA Zinātnes Parks, which was used
for the lease of a plot of land from VAS Starptautiskā
lidosta Rīga (Riga International Airport) and loan
payments to AS SEB banka.
In 2021, the Group and the Parent Company carried out
a fair value revaluation for investments in SIA Zinātnes
Parks of EUR 1,358 million due to significantly
increased construction costs of new industrial facilities.
At the end of the reporting period, the total investments
of the Parent Company in SIA Zinātnes Parks amounted
to EUR 756 thousand, which 100% consists of a
convertible loan.
At the end of the reporting period, the value of the
Group's assets related to investments in SIA Zinātnes
Parks amounted to EUR 1 056 thousand, which
consists 100% of the capitalized costs of establishing
fixed assets.
AS Lightspace Holding is a holding company that owns
assets related to SIA Lightspace Technologies.
On 27 December 2021, HansaMatrix established AS
Lightspace Holding, investing EUR 35 thousand in its
share capital and investing all 17,445 or 67.7% of
Lightspace Technologies' shares in the company's
equity as a contribution in kind with a value of EUR
8,672 thousand and HansaMatrix's claim rights
against Lightspace Technologies in the amount of EUR
690 thousand.
Research and development
Business development
overview of associated
company - Lightspace
Technologies
19
HansaMatrix's R&D business has been mainly focused on providing R&D services and manufacturing services to the
associated company Lightspace Technologies, including manufacturing services provided to other third parties related to
high-tech optical devices in the optics and photonics sector. As of the first quarter of 2021, the Group ceases to report
separately on R&D revenue, as R&D services will be provided in addition to the core business, the provision of
manufacturing services in the electronics sector, and their volume will not represent a significant part of the total
revenue.
IG1050 design visualization
In Q4 2021, when most COVID restrictions were lifted, SAI Lightspace Technologies (hereinafter referred to as Lightspace)
actively attended events such as Slush and Augmented World Expo. With the return of the travel option, Lightspace's
sales and marketing team resumed face-to-face meetings and device demonstrations with strategic partners and
customers. The Company also resumed active talks with venture capital and corporate venture capital investors.
In November 2021, Lightspace participated in the KTVT by Volkswagen Group, one of the world's largest conferences
aimed at promoting synergies between cars and virtual technologies. Lightspace presented its multifocal augmented
reality technology, focusing on the automotive industry's application.
Also in November 2021, Lightspace signed a significant iG1050 supply agreement with an important
industrial customer. The contract amounts to EUR 2.2 million for deliveries in 2022. In case of successful
performance of the contract, the parties plan to extend the contract for future periods and new amounts. The
contract includes adapting the iG1050 to better match the chosen application.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Research and development
The Company's main focus remains on healthcare applications. In December, Lightpspace travelled to Finland to
demonstrate its new integration with a medical class tracking system for dental equipment producer Planmed. The
company received excellent reviews, and work on the next tasks has already begun.
In the third quarter of 2021, Lightspace showcased its devices to siemens AG's industrial group. Since Lightspace
received excellent reviews about the image quality of the device, the Company was introduced to Siemens Healthineers.
The demo device was sent to the cardiovascular department of Siemens Healthineers in Slovakia.
Lightspace is currently actively working on the preparation of the iG1050 production line and the purchase of materials.
The first equipment will be released in late March / April. Most of the equipment planned for this year has already been
booked.
In the fourth quarter of 2021, the EIC ScalingUp project selected Lightspace as one of the top 50
European DeepTech companies with the highest growth and financial potential.
In December 2021, Lightspace won the Export and Innovation Award in the category
"Knowledge-Based Innovation".
In order to strengthen corporate governance and ensure the implementation of the long-term strategy, Lightspace
strengthened its team by appointing Zanda Lapāne as head of business development. The business development
manager actively creates and maintains business relations with the company's partners.
The unique multifocal technology, invented by Lightspace, is considered a basic technology that provides the close-range
3D visualizations required in digital and image-driven medicine. Lightspace AR's head display's ability to display an object
in real 3D coordinates opens up opportunities to use it as a tool for CR, MRI, PET scanning and 3D ultrasonic data
visualization. Currently, there are no devices on the market that can display medically obtained data in real 3D
coordinates. Lightspace enters the medical market as a pioneer.
Lightspace is a photonics and optical solutions company that has become a global technology leader in multifocal
augmented reality displays. The applications of the product are intended in health care, industry, science, defense
industry, as well as in the fields of gaming, entertainment and multimedia. The company has invented a number of key
enabling technologies, including fast-switched liquid crystal optical diffuser technology.
By 9 February 2022, Lightspace has filed 48 international patent applications. Of these, three patent applications were
filed in the 4th quarter of 2021 and three patent applications were filed in January 2022.
SIA Lightspace Technologies fully (100%) owns Lightspace Labs Inc., a Delaware (USA) company, as well as a majority
(83.81%) and control over SIA EUROLCDS.
20
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
At the end of 2021, the Group's compound annual growth rate (CAGR) was 2%. The Group's growth over the last 2
years has been significantly hampered by the COVID-19 pandemic and the global semiconductor shortage, hindering
the fulfilment of production orders.
*Adjusted: The annual report of the Group's associate company SIA Lightspace Technologies for 2020 was approved after
the submission of the Group's annual report for 2020, as a result of which the Group's recognized losses from participation
in SIA Lightspace Technologies increased by EUR 247 thousand. In addition, other operating income was adjusted,
reducing it by EUR 48 thousand. These losses and decreasesin revenue were recognized in the 2020 annual report.
An explanation of the indicators is available in the section Other information "Definitions of alternative performance
measures".
Ratio, EUR'000 2017 2018 2019 2020* 2021
CAGR
Turnover 19 649 21 587 24 611 22 589 21 962 +2%
EBIT (Operating Profit) 1 877 1 395 1 316 656 1 145
EBIT (Operating Profit) Margin 9,55% 6,46% 5,35% 2,90% 5,21%
EBITDA 3 685 3 297 3 761 3 034 3 732 +0%
EBITDA Margin 18,75% 15,27% 15,28% 13,43% 16,99%
Net profit 1 679 781 208 -847 -1 952
Normalized net profit 1 336 1 272 1 144 449 928
Normalized net profit margin 6,80% 5,89% 4,65% 1,99% 4,23%
Normalized ROA 7,16% 5,02% 3,84% 1,56% 3,25%
Normalized ROE 16,42% 14,51% 12,67% 5,30% 14,39%
Liquidity ratio 0,69 1,02 0,85 0,79 0,73
Normalised return on capital
employed (ROCE)
11,09% 7,01% 5,39% 2,22% 5,49%
Earnings per share 0,92 0,43 0,11 -0,46 -1,07
Adjusted earnings per share 0,92 0,38 0,10 -0,42 -0,95
Key Growth and Financial Ratios
21
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
In 2021, Hansa Matrix’s share price decreased by 2.73%, and on 31 December 2021 the share price of one HansaMatrix
share was EUR 8.90. The highest share price this year was EUR 16.80, while the lowest price was EUR 8.50. The graph
below shows the tradingtrends of HansaMatrixshares in 2021:
Price 2016 2017 2018 2019 2020
First 6,950 7,950 8,14 6,50 9,10
Max 8,150 8,830 8,50 6,65 16,80
Min 6,950 6,900 6,05 5,93 8,50
Most recent transaction 7,950 8,140 6,50 6,25 8,90
Number 19574 72941 137505 32591 175 092
Turnover (millions) EUR 0,15 EUR 0,51 EUR 0,94 EUR0,20 EUR 1,78
Capitalization (millions) EUR 14,54 EUR 14,89 EUR11,89 EUR 11,43 EUR 16,28
Securities trading history is summarized in the following table:
Jan’21
HMX1R
01.012021 - 21.12.2021 8,9 € -0,25 (-2,73%)
12
11
10
9
10 th.
0
Price Volume
22
Mar’21
May’21
Jul’21
Sep’21
Nov’21
Jan’22
On June 16, 2021, the largest shareholder of HansaMatrix, Macro Riga, which as of June 16, 2021 owned 33.94% or
620,950 shares of the Company, informed HansaMatrix of its intention to sell up to 2% of the Group's shares in the coming
months. Sales revenue was primarilyused to support SIA Lightspace Technologies future developmentneeds.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Stock and Securities Market
In 2021, HansaMatrix's 5-year strategy was developed and approved, setting goals for business growth, finance, customer
experience, human resources and sustainability for this period. The Group's strategy for the next 5 years foresee
significant business growth with an emphasis on increasing the share of high value-added products, focusing on the
industrial, data network, medical, optical and aviation sectors in international markets, primarily in the Scandinavian and
Baltic countries.
Non- financial report
Economical
development
Clients experience
• Quality
• Costs
• Reliability
• Good work and economical growth
• Innovation and infrastructure
Social
development
Expertise
• Knowledge
• Competencies
• Continous learning
• Good health
• Gender diversity and eqality
• Quality education
Environmental
protection
Responsibility
• Employees
• Population (near the Group)
• Latvian society
• Systematic reduction
of the impact on
climate change
23
The Group's non-financial report has been prepared in accordance with the guidelines developed by Nasdaq (ESG Reporting
Guide 2.0, available: https://www.nasdaq.com/docs/2019/11/26/2019-ESG-Reporting-Guide.pdf.),published in May 2019.
The Group performs new electronic products and systems development, industrialization and
provides a full range of manufacturing services for data network equipment, the Internet of Things,
industrial systems and other products in high value-added market segments.
The majority of the Group's revenues are generated by providing manufacturing services in electronics sector, including the
industrialization of electronic products, assembly of components on electronic boards and assembly of end products,
component supply chain management services and plastic parts production. The Group also has revenues from research
and development services in the electronics industry and the production and assembly of high-precision metal, plastic and
various composite components, which complement its core business- electronics manufacturing services.
HansaMatrix is the Group's parent company, which performs the Group's strategic and financial management, sales
process management, as well as the strategic management of customer and supplier relations and the management of
legal relations. HansaMatrix management office is located in Mārupe, Ziedleju street 1. HansaMatrix manufactures high-
precision products of various materials in Mārupe, Zemzaru Street 3. In addition, HansaMatrix, upon receiving production
orders in accordance with production service agreements, assigns them to its subsidiary HansaMatrix Pārogre, which is
the Group's Ogre plant, at Akmeņu Street 72, Ogre and HansaMatrix Ventspils, which is the Group 's Ventspils plant, located
at Ventspils High Technology Park 1, Ventspils.
HansaMatrix Innovation, a subsidiary of HansaMatrix, manages new product and technology development assets of the
Group. HansaMatrix subsidiary SIA Zinātnes parks is developing an industrial real estate project located in Rigas
International Airportsarea.
On February 24, 2021, the Group approved a sustainability policy and targets, in accordance with the core business of
providing electronic manufacturing services, in line with the Group’s values and considering resolution adopted by the UN
General Assembly in 2015 “Transforming Our World: the 2030 Agenda for Sustainable Development” specified framework
of the set of 17 sustainable development targets and priorities, in which the Group can make the most significant
contribution:
Target group Group’s values
Target
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
EU Taxonomy
24
To mitigate climate change and address environmental degradation, the European Union (EU) has set
ambitious targets to reduce greenhouse gas (GHG) emissions by 55% by 2030 and to become climate neutral
by 2050. The European Green Deal is a strategy by which Europe aims to achieve climate neutrality.
Significant financial resources will be needed to achieve the set goals. The Taxonomy Regulation 2020/852
1
is a key component of the European Commission's action plan to redirect capital flows towards a more
sustainable economy. It represents an important step towards achieving carbon neutrality by 2050 in line with
EU climate goals as the Taxonomy is a classification system for environmentally sustainable economic
activities.
On the voluntary bases, HansaMatrix as a non-financial undertaking presents the share of the Group’s
turnover, capital expenditure (Capex) and operating expenditure (Opex) for the reporting period 2021, which
are associated with Taxonomy-eligible and Taxonomy-non-eligible economic activities related to the first two
environmental objectives (climate change mitigation and climate change adaptation) in accordance with
Taxonomy Regulation 2020/852 Article 8 and Delegated Regulation 2021/2178
2
Article 10 Section 2.
HansaMatrix Group economic activities – Taxonomy-non-eligible.
HansaMatrix Group has examined all Taxonomy-eligible economic activities listed in the Delegated
Regulation 2021/2139
3
. The Delegated Regulation 2021/2139 focuses on economic activities and sectors
that have the greatest potential to achieve the objective of climate change mitigation – that is, the need to
avoid producing GHG emissions, to reduce such emissions or to increase GHG removals and long-term
carbon storage.
After a thorough review involving all relevant divisions and functions, we concluded that economic activities
of the Group at this point of time are not covered by the Delegated Regulation 2021/2139 and consequently
they are Taxonomy-non- eligible, thus, the share of Taxonomy-eligible economic activities in total turnover is
0%.
In addition, the capital and operating expenditure to be reported also include those that are related to the
purchase of output from other Taxonomy-eligible economic activities and certain individual measures
enabling the activities to become low-carbon, or to lead to GHG reductions. Based on accounting policy
regarding these individually Taxonomy-eligible Capex/Opex which are related to installation, maintenance and
repair of energy efficiency equipment (cf. the section “Explanations on the numerator of the Capex KPI and
the Opex KPI”), we report total KPIs as follows:
Total, M
(EUR)
Proportion of Taxonomy-
eligible economic activities
(in %)
Proportion of Taxonomy-
non-eligible economic
activities (in %)
Turover 21,96 0% 100%
Capital expenditure (Capex)
1,12 9% 91%
Operating expenditure (Opex)
1,35 1,4% 98,6%
Proportion of Taxonomy-eligible and Taxonomy-non-eligible economic
activities in total turnover, Capex and Opex
1
Regulation (EU) 2020/85 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088
2
Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the
content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic
activities, and specifying the methodology to comply with that disclosure obligation
3
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the
technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change
adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Explanations on the numerator of the Capex KPI and the Opex KPI
25
Since HansaMatrix Group has not identified Taxonomy-eligible economic activities, we do not record Capex/Opex
related to assets or processes that are associated with Taxonomy-eligible economic activities (“category a” acc. to
Sect. 1.1.2.2 of Annex I to the Delegated Regulation 2021/2178) in the numerator of the Capex KPI and the Opex KPI.
Furthermore, there are no Capex plans to upgrade a Taxonomy-eligible economic activity to become Taxonomy-aligned
or to expand a Taxonomy-eligible economic activity at this point of time (“category b” acc. to Sect. 1.1.2.2 of Annex I to
the Delegated Regulation 2021/2178).
Only “category c” Capex and Opex can therefore qualify as Taxonomy-eligible, i.e. Capex/Opex related to the purchase
of output from Taxonomy-eligible economic activities and individual measures enabling the target activities (our non-
eligible activities) to become low-carbon or to lead to greenhouse gas reductions (Sect. 1.1.2.2. (c) of Annex I to the
Delegated Regulation 2021/2178). These individual measures correspond to economic activities listed in the delegated
acts supplementing the Taxonomy Regulation (as of today, the Delegated Regulation 2021/2139) and must be
implemented and operational within 18 months.
HansaMatrix Group has identified the following purchased outputs and individual measures that correspond to eligible
economic activities and, thus, result in Taxonomy-eligible Capex/Opex:
Individually Taxonomy-eligible Capex/Opex and the
corresponding economic activities
Individually Taxonomy- eligible Capex/Opex
Corresponding economic activity
(Annex I to Delegated Regulation
2021/2139)
Installation, maintenance and repair of energy
efficiency equipment in the production plants,
including:
addition of insulation components
installation, maintenance, and repair of
ventilation and air-conditioning (HVAC)
systems
installation and replacement of energy
efficient light sources
maintenance and repair of heating system
7.3. Installation, maintenance and repair of
energy efficiency equipment
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
The Group complies with the requirements of all environmental quality regulations, all activities performed by the Group's
companies are assessed in accordance with the established requirements, regularly following their changes / amendments.
Before starting a new planned activity, environmental protection specialists are consulted in order to minimize the possible
negativeimpact on the environment.
HansaMatrix Pārogre, which is the Group's Ogre plant, environmental activities are regulated by certificate issued on
November 21, 2019 by the State Environmental Service Lielriga Regional Environmental Board for category C polluting
activity No.RI19IC0098, types of polluting activities: equipment for production of electrical products, except equipment
transformer or printed circuit for the production of combustion equipment with a rated thermal input equal to or greater than
0.2 and less than 5 megawatts and using biomass, peat or gaseous fuels as fuel. Until 07.11.2019 Environmental activities
at the Group's Ogre plant were regulated by the Group's parent company HansaMatrix category C polluting activity
certificate No. 1460 issuedon March 14, 2017 (with amendments on 10.11.2017).
The environmental activities of HansaMatrix Ventspils, which is the Group's Ventspils plant, are regulated by the State
Environmental Service for the C category polluting activity No. 2700-07-26 issued on September 24, 2007, for these types of
polluting activities: equipment for the production of electrical products, except equipment for the production of transformers
or printed circuits.
The most important events in 2021
In 2021, HansaMatrix Ventspils Implemented LED lighting project at the Ventspils plant at Ventspils High Technology Park
1, Ventspils, replacing 578 old bulbs with LED bulbs. The project managed to increase the light intensity to 1000 lux (lx),
and the expected total energy savings per year amount to 79,000 kilowatt hours (kWh). The part of the production
premises where the lightingis used 24/7/360 are expected to give the greatest energy savings.
Greenhouse gas (GhG) emissions (E1)
Carbon dioxide emissions in the Group are calculated in accordance with the methodology of the Latvian Environment,
Geology and Meteorology Center, which is reviewed and updated annually, as well as in accordance with the common
methodology for calculating the impact of measures and projects on climate change developed in Latvia n specified in
regulations of Minister Cabinet No. 42 “Methodology for Calculating Greenhouse Gas Emissions” issued on January 23,
2018.
The Group's GhG emissions are generated by consuming electricity by the Group's companies, purchased from electricity
suppliers and used in the Group's offices and production facilities, including the operation of production facilities, by using
district heating services for the premises of the Ventspils plant, consuming natural gas for heating the Ogre plant premises,
the management office and the Mārupe metal plant, as well as consuming fuel for the needs of the Group's employees
cars.
In 2021, the total GhG emissions of the Group compared to 2020 remained practically unchanged . A significant decrease
of 11% was observed in 2020 compared to 2019, which is mainly due to the reduction of emissions in electricity
consumption.
Environmental management indicators
26
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
GhG emissions, t/CO2
Since 2018, the intensity of the Group's greenhouse gas emissions has tended to decrease. In 2021, this indicator has
slightly increased compared to 2020, mainly due to the increase in the consumption of natural gas used for heating the
Ogre plant, which is mainly explained by the length and average temperature of the 2020 heating season.
800
700
600
500
400
300
200
100
0
2018 2019 2020 2021
Electricity
Heating
Natural gas Fuel used in cars
190
57
114
2017
192
149
512
62
228
173
652
230
58
210
224
721
54
165
199
217
635
70
172
27
241
631
148
GhG emission intensity (E2)
GhG emission intensity
34
32
30
28
26
24
22
20
26
31
30
28
2017 2018 2019 2020 2021
29
GHG Emission Intensity, gCO2/Revenue EUR
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
The Group's energy consumption has been calculated based on meter readings and documentation of energy volumes
purchased from suppliers.
Energy consumption increased slightly by 4.5% in 2021, mainly due to the volumes of heating and natural gas used, which
are relatedto the length and temperature of the 2020 heating season.
The Group consumes primary and secondary energy resources by valuing them according to the type of extraction. The
primary energy sources used are natural gas, electricity, diesel, petrol and nitrogen used in the production process.
Secondary energy resources used: thermal energy (heating water); water (drinking water). In 2021, the largest share in total
energyconsumption was for electricity- 46%, natural gas - 27%, heating and fuel 15% and 12%, respectively.
Energy usage, MWh
6,000
5,000
4,000
3,000
2,000
1,000
0
Electricity Heating Natural gas Fuel used in cars
28
5,075
614
1,345
4,265
640
505
4,476
692
4,970
935
4,856
901
567
1,163
620
2,253
1,954
2,056
1,102
595
2,258
763
2,353
1,063
1,263
Energy usage (E3) and energy mix (E5)
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
According to the ESG guidelines, social responsibility indicators are mainly related to responsibility towards employees and
compliance with general human rights norms. Taking into account discussions with stakeholders, the Group's goal in the
field of social development is to ensure a healthy life and promote the well-being of society, achieve gender diversity and
provide full and equal opportunities for employees, provide inclusive, fair and high-quality education, promote lifelong
learning opportunities.
In 2021, the Group initiated and conducted regular surveys of Ventspils and Ogre plant employees to obtain the Employee
Net Promoter Score (ENPS) in order to obtain measurable data and feedback on the satisfaction with the work environment
and loyalty to the Company. goals and values of most of the Group's employees. The ENPS score is regularly monitored at
the level of the Group's management and appropriate decisions and actions are taken to deal with issues relevant to the
Group'semployees, thus ensuring the fulfillment of the Group'ssocial development goals.
Considering that 2021 is the first year in which the Group starts to publish ESG indicators, only the most important (and not
all) environmental, social and corporate governance indicators is published in the Sustainability Report, which are published
in accordance with the Nasdaq guidelines (ESG Reporting Guide 2.0), balancing costs of collecting and publishing the
Group'sdata againstadditional information provided by specific indicators.
Social responsibility indicators
The Group complies with all laws and regulations in force in the Republic of Latvia applicable to employment. In addition to
their monthly salary, employees receive bonuses and social guarantees. Employees are granted fully paid health insurance
and life insurance with a value of 1 net annual salary. The Group provides material help to employees in a variety of life
situations. Since 2018, the Group's key employees for achieving their work KPI’s have been entitled to receive employee
stock options, which after 3 years of vesting period provide them employees with the right to acquire HansaMatrix shares
listed in Nasdaq Riga free of charge.
The ratio of the total remuneration of the Chairman of the Board of HansaMatrix (S1) to the median remuneration of
employees in 2021 was 6:1. The remuneration of the Chairman of the Management Board amounted to 2.81% of the total
remuneration of all employees of the Group.
In order to check Groups employment gender equality trends, men and women pay ratio for full time engineers and
manufacturing employees total remuneration median ratio is analyzed. The dynamics over the last five years have been
positive, the median men’s remuneration to the median remuneration of women ration has declined from an 130% in 2017 to
108% in 2021. In the Group, the remuneration of employees in the same position does not differ depending on gender, but
the difference between the average remuneration of men and women is formed by the relatively higher proportion of men in
the positionsof higher salary.
Remuneration of employees ratio (S1 and S2)
Gender pay ratio,
full time engineers
and manufacturing
150%
130%
110%
90%
70%
50%
130%
129%
115% 116%
108%
2017 2018 2019 2020 2021
29
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Employees turnover, number and %
Employees
lenght of
service
The majority (59%) of the Group's employees work for
more than 3 full years: 17% of employees work for 3 to
5 years, 27% for 6 to 10 years, and 15% for more than
10 years, which indicates that HansaMatrix is stable,
long-term employer.
The value of HansaMatrix's employee turnover rate
has fluctuated between 13% and 22% over the last five
years. During 2021, employee turnover increased due
to the Group's strategic focus on improving
operational efficiency and the impact of the Covid-19
pandemic. Due to the restriction set by the Latvian
government to employ only vaccinated employees in a
certain period, the employment termination rates of
employees who did not want to be vaccinated
increased..
Employee turnover (S3)
60
50
40
30
20
10
0
18%
22%
15%
13%
21%
25%
Employee turnover (except for the probationary period) Employee turnover, %
20%
15%
10%
5%
0%
33 49 36 31 50
Up to 2 years
From 3 to 5 years
From 6 to 10 years
More than10 years
30
15%
27%
17%
41%
41%
17%
27%
15%
Gender diversity (S4)
Overall the Group
historically has
employees more
males employees than
female employees
although in 2021 this
proportion has
decreased
significantly.
131%
154%
159%
155%
138%
100%
120%
140%
160%
180%
2017 2018 2019 2020 2021
Male/ female employee proportion
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
In accordance with the requirements of the Financial Instruments Market Law, HansaMatrix prepares a corporate
governance report, which is publiclyavailable on the websites of HansaMatrix and NasdaqRiga.
According to the Supervisory Board rules of the procedure approved by the Supervisory Board of HansaMatrix on November
25, 2019, the main responsibilities of the Supervisory Board are to make strategic and management decisions in the best
interests of the Company and shareholders, based on complete information, good faith and high ethical standards as a
good and diligent owner. The Group's Council and Management Board aims to manage the Group in accordance with the
Latvian Corporate Governance Code established by the Corporate Governance Advisory Board of the Ministry of Justice of
the Republic of Latvia (available at: https://bit.ly/3pLWVGH), thereby promoting and ensuring the Group's long-term value
creation, its efficient management and transparency.
The board diversity indicator dynamics as a ratio of the number of women to men in the board has exhibited a positive
dynamics the last 5 years, improving from 25% in 2017, when 1 women and 4 men worked in the Group’s council, to 67% in
2021, when in the council 2 women and 3 men were represented.
BOARD INDEPENDENCE(G2)
The Group's Supervisory Board has 5 members, 3 of whom are independent, which matches the criteria for an independent
member of the Supervisory Board proportion of the total number of the board members (at least 50%) as set out in the
Latvian Corporate Governance Code.
INCENTIVIZED PAY (G3).
On May 22, 2020, the Annual General Meeting of HansaMatrix approved the remuneration policy of the Management Board
and the Supervisory Board of HansaMatrix, which also provides for variable remuneration of the members of the
Management Board if pre-determined financial and / or non-financial targets are met. In accordance with the financial and
non-financial goals approved by the Supervisory Board, appropriate goals are set for the heads of the Group's structural
units, thus ensuring more efficient implementation of the Group's strategy and goals, involving employees from
administration, customer service, supplier management, product industrialization and production. The goals set for the
Group's management and employees also include those that promote the improvement of environmental indicators, social
responsibility indicators andcorporate governance.
Corporate governance indicators
Ratio of the number of women members of the Council
to the number of men, %
2017
70%
60%
50%
40%
30%
20%
10%
0%
2018
25% 25% 25%
50%
67%
2019 2020 2021
31
Board Diversity and Board independence (G1 and G2)
Board Diversity (G1)
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
HansaMatrix has included a number of sustainability goals in its 5-year strategy, focusing specifically on reducing CO2
emissions and kilowatt-hours of energy consumed. Emphasis is also placed on the normalization of the employee
turnover and the promotion of gender equality, equalizing the proportion of men and women in job categories where
possible.
The Group and the Parent Company's activities are exposed to
various risks: market risk, credit risk, liquidity and cash flow risk,
geopolitical risk, foreign currency risk, as well as interest rate
risk.
A vision for the future in an environmental context
MARKET RISK
Group and the Parent Company, operating in conditions of
high-market competition internationally, are subject to
market risk. This hedging is implemented in the Parent
Company with its own business development strategy,
which provides for the creation of a highly automated and
technologically advanced production process, operation in
diversified market sectors, which have pronounced growth
trends. There is constant work on attracting new customers.
In 2021, the top 5 largest clients of the Parent Company
accounted for 64% of the total revenue, the remaining 36%
was generated by 30 clients. Most of the top clients of the
Company have been working with AS HansaMatrix as their
manufacturer for at least 10 years.
CREDIT RISK
The Group and the Parent Company are exposed to credit
risk through its trade receivables. The Parent Company has
introduced a number of procedures that reduce the
possibility of the occurrence of irrecoverable debts. Most
buyers' trading credits are insured using a non-regulatory
factoring financial instrument. According to Note 24 to the
Financial Statement, as at 31 December 2021, 44% of all
receivables were insured. Buyers whose trade credits are not
or cannot be insured for some reason are subject to
shortened deferred payment terms, advance payments,
credit limits and other risk limiting conditions. In addition,
the history of repayment of receivables is constantly
evaluated, and if necessary, the limits and conditions of
tradingcredit for each buyer individuallyare changed.
LIQUIDITY AND CASH FLOW RISK
Group and the Parent Company are subject to liquidity and
cash flow risk. Liquidity is affected by the volume of stocks
and work in progress, the amount of trade loans granted to
buyers, the amount of advances received, the terms of
payment of suppliers and the amount of working capital at
the disposal of the Group and the Parent Company. For the
control of liquidity risk, the Company implements both
financial and operational management procedures. Regular
control of inventory volumes, rescheduling of orders and
supplies of raw materials and production volumes in order to
speed up the movement of stocks is carried out. The
amount of working capital required is also regularly
controlled, in this regard, planning the availability of credit
and financing instruments, their necessary amounts and
repayment schedules.
FOREIGN CURRENCY RISK
The Group and the Parent Company are subject to foreign
currency risk. The financial assets and liabilities of the
Company subject to foreign currency risk include cash and
cash equivalents, trade receivables and trade payables. The
Group and the Parent Company are mainly exposed to
foreign currency risk of the US dollar and EUR. To mitigate
foreign currency risk, the Parent Company effectively
employs foreign exchange hedging procedures, for example,
by using pricing policy, regularly adjusting sales prices to
reflect the changes in the prices of raw materials caused by
currency rate fluctuations, or planning supplies and sales in
the main currencies used – EUR and USD.
INTEREST RATE RISK
The Group and the Parent Company are also subject to
interest rate risks arising from the fluctuations of the
interbank money market rate for the euro (EURIBOR),
mostly relating to the possible increase in the ECB base
rate and resulting in EURIBOR rate increase for long-term
floating rate loans. The sensitivity of the pre-tax profit of
the Group and the Parent Company to possible changes in
the EURIBOR rates is comparably insignificant; for example,
a 1% increase in the EURIBOR rate leads to a decrease in
the net profit by less than EUR 45 thousand.
GEOPOLITICALRISK.
Income from sales outside the European Union represents a
small part of the Group’s turnover (approximately 15% of
the revenue), which gives rise to geopolitical risk. The global
electronics manufacturing services market is mainly
affected by the US-China "trade war", as well as the Russia-
Ukraine conflict. The increased US import tariffs on Chinese
electronics products in the US market give a good
advantage to Eastern European electronic system
manufacturers. On the other hand, a 'trade war' is slowing
down the economy and reducing investment in
infrastructure. The Russia-Ukraine conflict, on the other
hand, can affect and exacerbate the global semiconductor
deficit and extend supply times. The situation is not stable
and can change at any time. As a result of the sanctions
imposed on Russia in 2022, the global economic
environment, which will need to be adapted, will change
significantly.
Exposure to risks
32
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Impact of COVID-19
33
Despite COVID – 19 situations, most of European leading Electronic Manufacturing Services (EMS) companies experience
growth. Nevertheless, the electronics industry is facing significant component deficit explained by the growth in upstream
demand in data networks, automotive, medicine and IoT business sectors. The existing global component manufacturing
capacity was not sufficient for development of new technologies and the demand driven by COVID-19 pandemic global
outbreak.
The ongoing COVID-19 pandemic may have a negative impact on the Group performance in the short term in the following
areas: customer demand weakening, personnel safety issues and supply chain disruptions.
All business units of the Group, including Pārogre and Ventspils manufacturing plants, metal parts
and optics product unit in Mārupe and head office in Mārupe are fully operational. HansaMatrix
ensures safe working conditions to workers present at all plants and offices of the Company and
ensures remote work from home for employees where it is possible and effective. All requirements
of self-isolation and quarantine stipulated by law are supported and enforced when necessary.
In response to the emergency situation HansaMatrix has introduced internal code of emergency
aimed to ensure safeguarding and maintaining good health of the employees in the Group. New
internal regulations and business practices have been introduced and are being regularly followed
up and improved.
COVID-19 situationis impacting some of the risks to which theGroup is exposed.
MARKET RISK. The Group manages market risk according to its business development strategy, which foresees the
development of a highly automated and technologically developed manufacturing process, operating in diversified market
sectors with a growth tendency. Continued efforts are made for attracting new clients. In 2021, the top 5 clients on the
Parent Company accounted for 65% of the total revenue, the remaining 36% were generated by 40 clients. Most of the top
clients of the Company have been working with AS HansaMatrix as their manufacturer for at least 10 years.
COVID-19 impact on the sectors where the Group operates is different and balances out – in data networks and medical
sectors the demand is increasing, however the demand is decreasing or stagnating for products in other sectors, e.g. not
first necessityelectronic products, products relatedto aviation and tourism industries.
CREDIT RISK. The Group and the Parent Company are exposed to credit risk through its trade receivables. The Parent
Company has introduced various procedures to mitigate the risk of unrecoverable debts. Most trade credits are insured
using non-recourse factoring. As at 31 December 2021, 44% of all trade receivables outstanding were insured. Clients,
whose trade credits for any reason are not or cannot be insured, are subject to shortened payment schedules, advance
payments, credit limits and other risk hedging conditions. The credit history of customers is also assessed on an ongoing
basis and credit limits and terms are changed on an individualbasis as applicable.
For example, COVID-19 situation due to delays in investment attraction has influenced the payment schedule execution for
one of the Group’s IoT sector client’s debt in amount of 90 thousand EUR towards HansaMatrix. The Group has booked
provisions for this outstanding debt according to accounting policy and is actively seeking solutions for the debt
repayment.
HansaMatrix continues to work closely with customers to better identify and understand the potential impact the COVID-19
situation may have on the manufacturing order book. Customers, located in the affected countries, are continuing the
operations and are taking the virus spread and contraction precautionary measures.
The manufacturing order volume can be influenced by potential decisions by businesses to postpone investments and by
consumers to decrease expenditures and also by international travel restrictions preventing customers from promptly
accepting the executed orders, which potentially can be mitigatedby online solutions.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Impact of COVID-19
LIQUIDITY AND CASH FLOW RISK. Liquidity is affected by inventories and the volume of work in progress, the amount of
trade credits granted to clients, number of prepayments received, suppliers’ terms of payment and the working capital
available to the Group and the Parent Company. Liquidity strains can also influence the ability to carry out loan and lease
payments. To mitigate liquidity risk, the Parent Company employs financial and operational management procedures. The
level of inventories is monitored on a regular basis, orders and deliveries from suppliers are rescheduled, as are the
sequence and volume of planned manufacturing in order to speed up the inventory turnover. Working capital is also
monitored regularly which leads to planning of the availability of credit resources and financing instruments and the
amount and repayment schedules thereof.
COVID-19 situation has slowed inventory turnover for some of the Group Clients due to demand decrease and
also in some cases due to supply chain disruptions. The electronic component supply chain disruptions due
to coronavirus are expected to impact HansaMatrix manufacturing order execution, potentially shifting
fulfillment times, and could increase component sourcing costs.
To mitigate COVID-19 impact on liquidity, in addition to the regular procedures, the Group on ongoing basis closely monitors
and utilizes the available government support for liquidity. Nevertheless, at the end of 2021 the Group successfully extended
for 1 year the necessary workingcapital financing agreements with SEB banka in amount of EUR 4.56 million.
34
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Impact of the Russia-Ukraine Conflict
35
Taking into account the recent Russia-Ukraine conflict (Conflict) and its impact on the economic and business
environment situation in the Baltics and the world, HansaMatrix has assessed the Group's current business situation,
the risks caused by the Conflict and its possible impact on HansaMatrix's business.
As of today, all HansaMatrix business units are operating at the available capacity. HansaMatrix
has worked closely with customers to better identify and understand the potential impact of
Conflict on production order volumes. The Company has no customers in Russia, Ukraine or
Belarus, and HansaMatrix customers also do not have significant revenue exposure to the
markets directly involved in the Conflict. HansaMatrix has a diversified supplier base and the
Company has no suppliers in Russia, Ukraine or Belarus. The Company has contacted and
discussed the Conflict and related risks with key suppliers and logistics partners.
Main risks
RISK OF RISING ENERGYPRICES AND INFLATION
Russia, Ukraine and Belarus are countries rich in raw
materials, including oil, natural gas, metals and cereals,
whose supply disruptions as a result of international
sanctions and the Conflict are likely to lead to an increase in
energy, raw materials and food prices, contributing to
inflation in Europe in 2022 and 2023. The Company's
expenses related to energy and utilities are relatively small
in the total cost structure, accounting for about 2.5% of
revenue in 2021. However, the Company particularly
monitors the trends of energy prices and general inflation,
evaluating financial results and budget fulfillment every
month, if necessary, adjustments of production service
prices to maintain the profitability level are coordinated with
customers and made in a timelymanner.
RISK OF WAGE INFLATION
Increasing inflation is expected to contribute to higher
wage inflation in 2022 and 2023. The Company's
expenses related to employee remuneration are
significant in the overall cost structure, accounting for
approximately 39.1% of revenue in 2021. The
Company carefully monitors the trends of wage
inflation, evaluates financial results and budget
implementation on a monthly basis, so that, if
necessary, adjustments to the prices of production
services are coordinated with customers and made in
a timely manner to maintain the level of profitability.
RISK OF DECLINING PURCHASING ABILITY
Higher inflation, which limits economic growth, can
lead to a long-term decline in demand and investments.
The volume of production orders may be influenced by
potential decisions by companies to defer investments
and consumer decisions to reduce spending. Since the
beginning of the Conflict, the Company has not
received any negative indications of a decrease in
customer orders in the near future. To mitigate this risk,
HansaMatrix's sales team is constantly and actively
looking for new customers, with a strategic focus on
the Nordic countries.
RISK OF ATTRACTING NEW INVESTMENTS
Increased uncertainty in the business environment can
potentially affect investor sentiment in Europe and lead to
the postponement of investment decisions. HansaMatrix
associate Lightspace Technologies is currently focusing
on attracting investments in North America.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Main risks
36
SUPPLY CHAIN AND LIQUIDITYRISKS
Neon gas, which is needed to power lasers in semiconductor manufacturing and palladium metal used in later stages of
chip production, are the two main raw materials whose supply volumes on the global market may be limited as a result
of the Conflict. Industry analysts estimate that about 25-50% of the world's semiconductor quality level neon gas comes
from Russia and Ukraine, while about 30% of the world's palladium metal comes from Russia.
The growing demand and supply chain disruptions following the COVID-19 pandemic have led to a global
semiconductor shortage that has been going on for 1.5 years, which has initially helped to overcome the
additional supply chain problems caused by the Russian invasion of Ukraine, as many chip manufacturers
have significantly improved supply chain risk management and accumulated the materials needed for
production for 3-12 months ahead (https://cnb.cx/3K1IqGV).
In the longer term, and assuming that the Conflict between Russia and Ukraine will not be resolved and minimized in the
coming months, the above mentioned shortage of raw materials may lead to a rise in semiconductor prices and further
increase the chip deficit.
In addition, supply chains could be expected to be further hampered, as transport companies are unlikely to be able to
continue using rail in Russia, supplying semiconductors from Asia to Europe via Russia. Alternative transport options
include ships and aircraft, which could increase delivery time (ships) and transport costs (aircraft).
It would be expected that the disruption of the supply chain of electronic components caused by the Conflict between
Russia and Ukraine will affect the fulfillment of HansaMatrix production orders, possibly change execution times and
increase the cost of purchasing components, as well as may increase inventory balances.
In order to mitigate the impact of the shortage of components, HansaMatrix diversifies the supplier base, applies the
alternative component application approach, cooperates with brokers and makes timely purchases of components for
the execution of customers orders. Liquidity risk mitigation measures include weekly cash flow management and
liquidity planning on a monthly basis for the next 12 months, which allows for timely decisions to improve liquidity.
Impact on the Company's business activities
HansaMatrix remains confident in the Company's long-term prospects and growth strategy. The Company believes that
the direct impact of the Russia-Ukraine conflict on the Company is relatively limited in the short term, however, the
uncertainty of the business environment has increased significantly and the scale of the Conflict's impact on the
Company could change, especially in relation to future challenges related to supply chain risks and costs increase, that
could potentially negatively affect business volume in the coming quarters of 2022.
HansaMatrix has assessed the key assumptions for the determination of fair value made for the Consolidated and
Parent Company’s financial statements and has concluded that at the date of this report the fair values of the Group's
assets and liabilities have not been materially affected by the circumstances surrounding the Conflict. Nevertheless, the
value of the liability of the European Investment Bank (EIB) convertible guarantee securities could change from the first
quarter of 2022, as the Company uses the weighted average share price of HansaMatrix for the last relevant quarter as
one of the exit variables to determine the fair value of these liabilities. Moreover, as of 31 December 2021, the fair value
of HansaMatrix and the Group's investments has decreased as of 31 December 2021, as reflected in this report.
In an adverse scenario, if the Conflict continues for a long time and on a substantially large scale, the impact on the
Company could be more significant as a result of the risks described above.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Significant Events
On 11 January 2022 HansaMatrix increased its share capital. HansaMatrix has previously informed that in accordance
with the decisions taken by the extraordinary shareholders' meeting on 16 February 2018, the issuance of the Company's
share options and the related increase of the Company's share capital with a condition were approved. On 26 November
2021, when implementing the conversion of share options, the Management Board of the Company decided to increase
the Company's share capital by EUR 5500 (five thousand five hundred euros) by issuing new 5500 (five thousand five
hundred) bearer shares with the nominal value of one share of EUR 1 (one euro), which were registered in the Commercial
Register of the Republic of Latvia on 10 January 2022.
After the increase in the share capital, the total share capital of the Company is EUR 1 834 881
(one million eight hundred thirty-four thousand eight hundred eighty-one euro).
On 24 February 2022 HansaMatrix received a production order for the production and delivery of aquaculture systems to
a new client in the Nordic industrial market sector related to the aquaculture sector. The volume of planned deliveries in
three years amounts to EUR 5 million from the second quarter of 2022. HansaMatrix's Management Board is pleased,
because the order received confirms the team's ability to implement the growth strategy in the face of shortage of
electronic components, confirms the Company's ability to take advantage of the growing trend of placing production
orders geographically closer to the customers with the aim of reducing the current uncertainty in global supply chains by
strengthening HansaMatrix's position in the region.
In order to achieve its strategic business development goals by evaluating strategic development opportunities, as well
as taking into account the difficult investment climate in the region, HansaMatrix associate company SIA Lightspace
Technologies on March 14, 2022 has started the process to become a publicly listed company in North America TSX
Venture Exchange in Toronto. Funding will be raised through contributions from private investors. The Company will
disclose more detailed information about the listing on the stock exchange in accordance with the requirements of
regulatory enactments.
Further Development
THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC
SIGNATURE AND CONTAINS A TIME STAMP
37
In 2021, the Group and the Parent Company continue implementing their strategic
development goals by raising the share of knowledge intensive product development and
manufacturing.
Jānis Sams
Chairman of the Board
April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
Statement of Management’s Responsibility
38
The Management Board of AS HansaMatrix prepares separate and consolidated financial statements for
each financial year which give a true and fair view of the AS HansaMatrix (hereinafter – the Parent
Company) and the AS HansaMatrix group’s (hereinafter - the Group) financial position at the end of the
respective period, and the financial results and cash flows of the Parent Company and the Group for that
respective period. The financial statements are prepared in accordance with International Financial
Reporting Standards as adopted by the European Union.
In preparing those financial statements, the management selects suitable accounting policies and then
apply them consistently; makes judgments and estimates that are reasonable and prudent; prepares the
financial statements on the going concern basis unless it is inappropriate to presume that the going
concern principle may be applied.
The Management Board of AS HansaMatrix is responsible for keeping proper accounting records, which
disclose with reasonable accuracy at any time the financial position, financial performance and cash
flows of the Parent Company and the Group and enable them to ensure that financial statements drawn
up from them comply with International Financial Reporting Standards as adopted by the European Union.
For the ManagementBoard of AS HansaMatrix:
THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC
SIGNATURE AND CONTAINS A TIME STAMP
Jānis Sams
Chairman of the Board
April 29, 2022
AS “HansaMatrix”
Unified registration number:
40003454390
Consolidated
and Parent Company’s
Annual Report 2021
39
Financial statements
Statement of comprehensive income
Group Parent company
Note 2021 2020** 2021 2020
Restated
EUR EUR EUR EUR
Revenue from contracts with customers
4 21 962 274 22 588 982 21 358 818 21 386 718
Cost of sales
5 (18 826 011 ) (20 016 243 ) (19 534 281 ) (20 843 512 )
Gross profit 3 136 263 2 572 739 1 824 537 543 206
Distribution costs
6 (817 858 ) (856 607 ) (151 856 ) (96 258 )
Administrative expense
7 (2 075 107 ) (1 738 345 ) (1 380 297 ) ( 965 407 )
Other operating income
8 1 004 595 731 437 494 854 671 331
Other operating expense
9 (103 265 ) (53 693 ) (82 738 ) (15 885 )
Operating profit 1 144 628 655 531 704 500 136 987
Share of loss of associates accounted using the equity
method
20 (837 321 ) (572 611 ) - -
Impairment loss on non-financial assets
10 (1 389 709 ) - (838 076 ) -
Finance income
11 11 421 10 290 88 620 31 096
Finance costs
12 (867 609 ) (939 796 ) (1 394 645 ) (824 466 )
Profit/(loss) before tax (1 938 590 ) (846 586 ) (1 439 601 ) (656 383 )
Corporate income tax
13 (13 720 ) - (13 720 ) -
Net profit/(loss) for the reporting period (1 952 310 ) (846 586 ) (1 453 321 ) (656 383 )
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods, net of tax:
Income from revaluation of fixed assets
Total comprehensive income/loss for the year (1 737 351 ) (846 586 ) (1 238 362 ) (656 383 )
Profit/(loss) attributable to:
Equity holders of the Parent Company
(1 952 310 ) (845 296 ) (1 453 321 ) (656 383 )
Non-controlling interests
Combined income/(loss) attributable to:
Equity holders of the Parent Company
(1 737 351 ) (845 296 ) (1 238 362 ) (656 383 )
Non-controlling interests
Basic earnings per share, EUR
15 (1.07 ) (0.46 )
Diluted earnings per share, EUR
15 (0.95 ) (0.41 )
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
** See Note 3
The accompanying notes form an integral part of these financial statements.
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
40
Statement of financial position
Assets
Group Parent Company
Note
31.12.2021 31.12.2020** 31.12.2021 31.12.2020
Restated
LONG- TERM INVESTMENTS EUR EUR EUR EUR
Intangible assets
ODM assets 394 813 310 475 - -
Other intangible assets 562 911 575 706 541 581 550 890
Goodwill - 360 653 - -
Total intangible assets 16 957 724 1 246 834 541 581 550 890
Property, plant and equipment
Land and buildings 3 789 000 3 428 169 3 789 000 3 428 169
Equipment and machinery 3 716 385 4 201 035 2 549 692 2 765 033
Other fixtures and fittings, tools and equipment 480 117 558 352 72 790 89 887
Right-of-use assets 3 659 998 2 792 929 692 644 516 165
Leasehold improvements 120 659 90 110 - -
Construction in progress 1 070 305 2 369 063 - 362 360
Total property, plant and equipment 17 12 836 464 13 439 658 7 104 126 7 161 614
Non-current financial assets
Investments in subsidiaries 18 - - 10 323 130 1 732 815
Investments in associates by equity method 20 6 106 799 1 982 387 - -
Investments in associates 20 - - - 3 709 889
Investments in other companies 21 61 582 42 086 61 298 41 801
Other investment loans 20 - 4 961 573 - 4 961 573
Loan to related company 19 - - 954 855 916 876
Other financial assets 22 - 38 564 - 38 564
Other non-current receivables 42 333 61 048 35 496 17 412
Totala non- current financial assets 6 210 714 7 085 658 11 374 779 11 418 930
TOTAL NON- CURRENT ASSETS 20 004 902 21 772 150 19 020 486 19 131 434
CURRENT ASSETS
Raw materials and consumables 23 3 955 773 1 972 306 3 635 996 1 567 036
Trade receivables from contracts with customers 24 1 653 701 755 890 794 462 269 907
Receivables from related companies from contracts
with customers
25 - - 12 264 97 757
Prepayments for goods 82 935 94 152 26 986 22 991
Loan to subsidiary 19 - - 756 000 1 066 200
Loan to shareholder 41 563 201 551 883 563 201 551 883
Prepaid expense 55 909 30 632 42 313 20 356
Contract assets 4 1 487 173 2 225 865 589 232 1 020 872
Other receivables 26 282 324 304 448 110 075 192 488
Cash and cash equivalents 27 451 210 830 243 290 136 751 733
TOTAL CURRENT ASSETS 8 532 226 6 765 419 6 820 665 5 561 223
TOTAL ASSETS 28 537 128 28 537 569 25 841 151 24 692 657
** See Note 3
The accompanying notes form an integral part of these financial statements.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
41
Statement of financial position
Equity and liabilities
Group Parent Company
Note
31.12.2021 31.12.2020** 31.12.2021 31.12.2020
Restated
EQUITY EUR EUR EUR EUR
Share capital 28 1 829 381 1 829 381 1 829 381 1 829 381
Share premium 28 2 435 579 2 435 579 2 435 579 2 435 579
Reserves 29 50 659 1 973 50 659 1 973
Non-current asset revaluation reserve 30 2 006 222 1 914 956 2 006 222 1 914 956
Retained earnings/(accumulated loss):
(a) brought forward 2 064 847 2 842 621 1 619 118 2 206 689
(b) for the period (1 952 310 ) (846 586 ) (1 453 321 ) (656 383 )
TOTAL EQUITY 6 434 378 8 177 924 6 487 638 7 732 195
LIABILITIES
Non- current liabilities
Loans from credit institutions 31 5 370 208 7 390 029 5 370 208 7 091 046
Lease liabilities 32 2 455 353 1 686 167 454 706 316 559
Other financial liabilities 22 1 880 003 1 652 485 1 880 003 1 652 485
Deferred revenue 34 603 004 724 075 531 013 617 060
Taxes and mandatory state social insurance
contributions – non-current
37 141 078 273 417 - -
Total non- current liabilities 10 449 646 11 726 173 8 235 930 9 677 150
Current liabilities
Loans from credit institutions 31 2 433 034 1 829 071 2 134 051 1 629 749
Lease liabilities 32 1 042 451 960 475 207 567 145 583
Prepayments received under contracts with
customers
35 1 185 335 788 670 1 064 113 694 030
Trade payables 36 5 717 775 3 496 960 3 914 353 1 757 396
Payables to related companies 41 - - 3 352 237 2 728 287
Taxes and mandatory State social insurance
contributions
37 534 893 811 374 24 351 46 752
Corporate income tax 38 799 2 516 195 824
Other liabilities 39 177 282 251 387 32 775 35 194
Deferred revenue 34 192 666 185 758 142 075 135 168
Accrued liabilities 40 368 869 307 261 245 866 110 329
Total current liabilities 11 653 104 8 633 472 11 117 583 7 283 312
TOTAL LIABILITIES 22 102 750 20 359 645 19 353 513 16 960 462
TOTAL EQUITY AND LIABILITIES 28 537 128 28 537 569 25 841 151 24 692 657
** See Note 3
The accompanying notes form an integral part of these financial statements.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
42
Statement of cash flows
Group Parent Company
Note
2021 2020** 2021 2020
Restated
EUR EUR EUR EUR
CASH FLOWS TO/ FROM OPERATING ACTIVITIES
Profit/ (loss) before tax (1 938 590 ) ( 846 586 ) (1 439 601 ) ( 656 383 )
Adjustments for:
Depreciation and amortization 16,17 2 587 401 2 282 643 1 172 076 1 035 408
Depreciation included in the cost of work in progress
and in cost of fixed assets
Interest expense 12 565 415 552 587 427 582 438 573
Interest income 11 ( 11 421 ) ( 10 290 ) ( 88 620 ) ( 31 096 )
Allowances for slow-moving items and receivables 74 896 ( 117 976 ) 120 728 ( 46 557 )
Revenues from the recognition of grant funding 8 ( 192 859 ) ( 227 078 ) ( 157 835 ) ( 192 054 )
Profit from sales of fixed assets 8 ( 2 454 ) ( 13 866 )
( 263 ) ( 13 866 )
Loss on impairment, disposal of property, plant and
equipment
Fair value change for warrants 12 227 518 306 555 227 518 306 555
Share of loss of an associates 20 837 321 572 611 - -
Losses related to investment in subsidiary - - 1 471 673 -
Adjustments for:
(Increase)/ decrease in inventories (1 994 348 ) 1 146 084 (2 148 936 ) 957 850
(Increase)/ decrease in receivables ( 395 185 ) ( 215 959 ) ( 979 104 ) 1 098 188
Increase/ (decrease) in payables 2 358 746 ( 110 474 )
( 373 715 )
Cash generated from operations, gross 3 506 494 3 413 803 2 240 979 2 522 903
Interest paid ( 281 840 ) ( 286 732 ) ( 82 503 ) ( 152 161 )
Corporate income tax paid ( 13 720 ) - ( 13 720 ) -
Net cash flows to/ from operating activities 3 210 934 3 127 071 2 144 756 2 370 742
CASH FLOWS TO/ FROM INVESTING ACTIVITIES
Acquisition of intangible assets and property, plant and
equipment
16,17 (1 120 591 ) ( 840 546 ) ( 560 087 ) ( 519 408 )
Proceeds from sale of property, plant and equipment 5 972 117 002 3 848 193 665
Investments in subsidiaries - - ( 35 000 ) ( 247 493 )
Investments in other companies ( 19 656 ) ( 4 333 ) ( 19 496 ) ( 4 333 )
Proceeds from the sale of investments 21 174 - 21 174 -
Loans to subsidiaries - - (316 300 ) -
Loans to other companies - ( 500 127 ) - ( 500 127 )
Net cash flows to/ from investing activities (1 113 101 ) (1 228 004 ) ( 905 861 ) (1 077 696 )
CASH FLOWS TO/ FROM FINANCING ACTIVITIES
Dividends paid ( 54 881 ) - ( 54 881 ) -
Grants received 432 884 376 707 79 295 42 059
Loans repaid to credit institutions
33
(1 687 488 ) ( 849 205 ) (1 488 166 ) ( 749 544 )
Lease repayments 33 (1 167 381 ) ( 850 806 ) ( 236 740 ) ( 188 932 )
Other loans - - - 109 178
Net cash flows to/ from financing activities (2 476 866 ) (1 323 304 ) (1 700 492 ) ( 787 239 )
Change in cash and cash equivalents for the year ( 379 033 ) 575 763 ( 461 597 ) 505 807
Cash and cash equivalents at the beginning of the year 27 830 243 254 480 751 733 245 926
Cash and cash equivalents at the end of the year 27 451 210 830 243 290 136 751 733
**See Note 3
The accompanying notes form an integral part of these financial statements.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
43
Statement of changes in equity
Share capital
Share
premium
Reserves
Non-current asset
revaluation
reserve
Retained
earnings/
(accumulated
loss)
Non-controlling
interest
Total
EUR EUR EUR EUR EUR EUR EUR
Balance as at
31 December 2019
Loss for the reporting
period (restated - see
Note 3.2)
Other comprehensive
income
Total comprehensive
income**
Depreciation of
revalued items of
property, plant and
equipment
Share options
reserves
Acquisition of non-
controlling interest
Balance as at
31 December 2020**
Loss for the reporting
period
(1 952 310 )
Revaluation of fixed
assets
Total comprehensive
losses
Depreciation of
revalued items of
property, plant and
equipment
Share option reserves - - 48 686 - - - 48 686
Dividends paid - - - - ( 54 881 ) - (54 881 )
Balance as at
31 December 2021
Group
** See Note 3
The accompanying notes form an integral part of these financial statements.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
44
Statement of changes in equity
Parent Company
Share capital Share premium Reserves
Non-current asset
revaluation reserve
Retained
earnings/
(accumulated
loss)
Total
EUR EUR EUR EUR EUR EUR
Balance as at
31 December 2019
Loss for the reporting period - - - - ( 656 383 ) ( 656 383 )
Other comprehensive income - - - - - -
Total comprehensive loss - - - - ( 656 383 ) ( 656 383 )
Depreciation of revalued items
of property, plant and
equipment
Share option reserves - - 1 285 - - 1 285
Balance as at
31 December 2020
Loss for the reporting period - - - - (1 453 321 ) (1 453 321 )
Revaluation of fixed assets - - - 214 959 -
Total comprehensive losses - - - 214 959 (1 453 321 ) (1 238 362 )
Depreciation of revalued items
of property, plant and
equipment
Share option reserves - - 48 686 - - 48 686
Dividends paid - - - - ( 54 881 ) ( 54 881 )
Balance as at
31 December 2021
The accompanying notes form an integral part of these financial statements.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
45
Annex to the financial statement
1. General information
AS HansaMatrix (hereinafter – the Parent Company) was registered with the Republic of Latvia Enterprise Register on
30 July 1999 and re-registered with the Republic of Latvia Commercial Register on 27 December 2002 under unified
registration number 40003454390. The registered office of the Parent Company is at Akmeņu iela 72, Ogre. The shares
of the Parent Company are listed on Riga Stock Exchange, Latvia.
The HansaMatrix Group (hereinafter – the Group) is a leading Baltic electronic system product developer and
Company is provided in Notes 18 and Note 41.
The financial statements for the year ended 31 December 2021 were approved by a decision of the Parent Company’s
Board on 29 April 2022.
The Parent Company’s shareholders have the power to amend the consolidated and separate financial statements after
the issue.
2. Important accounting principles
2.1. BASIS OF PREPARATION
The financial statements present the consolidated financial position of the AS HansaMatrix Group (i.e. AS HansaMatrix
and its subsidiaries) and the financial position of AS HansaMatrix on a stand-alone basis.
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and
standard interpretations published by IFRS Interpretations Committee, i.e. IFRIC as adopted by the European Union. The
financial statements are prepared on a historical cost basis, unless stated otherwise in the accounting policies
described below.
The monetary unit used in the financial statements is the euro (EUR). The financial statements cover the period 1
January 2021 through 31 December 20201.
2.2. BASIS OF CONSOLIDATION
2.2.1 Subsidiaries
The consolidated financial statement includes the financial statements of AS "HansaMatrix" and all subsidiaries under
its control for 2021. The financial statements of the Subsidiary of the Group have been prepared for the same reporting
period as the financial statements of the Parent Company, applying the same accounting principles.
Subsidiaries are the entities controlled by the parent company. Control is achieved when the Parent Company:
• Has the power over the investee;
• Is exposed, or has rights, to variable returns from its involvement with the investee; and
• Has the ability to use its power to affect its returns.
The Parent company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
When the Parent company has less than a majority of the voting rights of an investee, it considers that it has power over
the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the
investee unilaterally. The Parent company considers all relevant facts and circumstances in assessing whether or not
the Parent company’s voting rights in an investee are sufficient to give it power, including:
• The size of the Parent company’s holding of voting rights relative to the size and dispersion of holdings of the
other vote holders;
• Potential voting rights held by the Parent company, other vote holders or other parties;
• Rights arising from other contractual arrangements;
• Any additional facts and circumstances that indicate that the Parent company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including voting
patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Parent Company obtains control over the subsidiary and ceases when
the Parent Company discontinues the control. Reporting periods and dates of the financial statements of the Parent
Company and subsidiaries correspond to those of the consolidated financial statements. Accounting policies of the
subsidiaries are changed to bring them in line with that of the Group.
The financial statements of the Parent Company and its subsidiaries are consolidated in the Group’s consolidated
financial statements by adding together like items of assets and liabilities as well as income and expense. All
intercompany transactions, balances and unrealized gains and losses on transactions between members of the Group
are eliminated in full on consolidation.
In the Parent Company’s financial statements investments in subsidiaries are accounted at cost less accumulated
impairment.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
46
2.2.2. Associate
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate
in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the
investment is adjusted to recognize changes in the Group’s share of net assets of the associate since the acquisition
date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for
impairment separately.
Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the
extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the profit or loss outside
operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate.
The financial statements of the associate are prepared for the same reporting period as the Group. When necessary,
adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity
method, the Group determines whether it is necessary to recognize an impairment loss on its investment in its
associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the
associate is impaired.
If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable
amount of the associate and it carrying value, and then recognizes the loss within ‘Share of profit of an associate’ in the
profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognizes any retained investment at its
fair value. Any difference between the carrying amount of the associate upon loss of significant influence the fair value
of the retained investment and proceeds from disposal is recognized in profit or loss.
In the Parent Company’s financial statements investments in associate are accounted at cost less accumulated
impairment.
Consolidation guidelines
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
47
2.2.3. Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
non-controlling interests in the acquiree and previously interest held in acquiree. For each business combination, the
Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share
of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in
administrative expenses. When the Group acquires a business, it assesses the financial assets and liabilities assumed
for appropriate classification and designation in accordance with the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts
by the acquiree. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the
acquisition date. Contingent consideration classified as equity is not re-measured and its subsequent settlement is
accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument
and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value
recognized in the statement of profit or loss in accordance with IFRS 9. Other contingent consideration that is not
within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognized in
profit or loss. Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred
and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets
acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of
the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition
date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate
consideration transferred, then the gain is recognized in profit or loss. After initial recognition, goodwill is measured at
cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to
benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those
units.
Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is
disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation
when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the
relative values of the operation disposed of and the portion of the cash-generatingunit retained.
Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary
are equity transactions (i.e. transactions with owners in their capacity as owners). When the proportion of the equity
held by non-controlling interests’ changes, the carrying amounts of the controlling and non-controlling interest’s area
adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which
the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly
in equity and attributed to the owners of the parent.
Consolidation guidelines
2.3. REVALUATION OF FOREIGN CURRENCIES
The functional and presentation currency of the Group and Parent company is the euro (EUR), the monetary unit of the
Republic of Latvia. Transactions in foreign currencies are translated into the euro at the euro foreign exchange
reference rate published by the European Central Bank at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated into the euro applying the euro foreign exchange reference rate
published by the European Central Bank at the last day of the reporting year. The differences arising on settlements of
transactions or on reporting foreign currency transactions at rates different from those at which these transactions
have originally been recorded are netted in the statement of comprehensive income accounts. Non-monetary items that
are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of
the initial transactions. The non-monetary items are carried at historical cost and no further retranslation is performed.
Revaluation of foreign currencies
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
48
Non-financial assets and liabilities
2.4. NON-FINANCIAL ASSETS AND LIABILITIES
Intangible non-current assets are stated at cost and
amortized over their estimated useful lives on a straight-
line basis. The carrying values of intangible assets are
reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be
recoverable. Losses from impairment are recognized
where the carrying value of intangible non-current assets
exceeds their recoverable amount.
Other intangible assets are comprised of software and
licenses. Amortization is calculated on straight line basis.
Other intangible assets have a useful life of 3 – 5 years.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognized in the statement of comprehensive
income when the asset is derecognized.
2.4.2. RESEARCH AND DEVELOPMENT COSTS
Research costs are expensed as incurred. Development
expenditures on an individual project are recognized as
an intangible asset when the Group can demonstrate the
technical feasibility of completing the intangible asset so
that the asset will be available for use or sale, its
intention to complete and its ability and intention to use
or sell the asset, how the asset will generate future
economic benefits, the availability of resources to
complete the asset and the ability to measure reliably the
expenditure during development. Other development
expenditure is written off.
After initial recognition, development expenditure is
recognized as intangible assets at cost less accumulated
amortization and any accumulated impairment losses.
Assets are amortized over their expected useful lives. At
each reporting date, it is analysed whether there is any
indication that the asset may be impaired.
2.4.1. ODM (ORIGINAL DESIGN MANUFACTURING) ASSETS
Intangible assets comprise intellectual property arising from research and development of the Parent Company and the
Group in the form of ODM (Original Design Manufacturing) assets. The Parent Company and the Group recognizes and,
according to IAS 38, capitalizes the results of development of products, materials, devices, processes and systems
derived as a result of targeted projects, which are ODM assets. ODM assets may incorporate tangible elements, such as
prototypes of materials or products, samples, devices, systems, and intangible elements, such as project or production
documents, documented processes, inventions or innovations which are or are not protected by patents.
The creation of ODM assets is initiated only for a specific identified customer or several such customers after the
expected economic result has been evaluated. This process is accurately managed by accounting for all costs, both
costs of direct materials used in project development and the full cost of engineering hours spent, including salaries of
engineers plus costs incurred to ensure their work, but excluding administrative expense.
When recognizing an ODM asset, the Group determines the amortization charge of each ODM asset per one unit of a
product associated with the use of the ODM asset and the total number of units of the product by which the accrued
value will be fully amortized. The expected amortization period of ODM assets is 3 years. The selling price per unit of
the ODM asset included in the price of delivery of the product may be higher than its amortization expense.
In the course of modifying an ODM asset by adapting it to the needs of several customers and various products, it is
reclassified as property, plant and equipment, if the physical element of the asset is more significant than intangible
element. If the development costs included in the asset are an integral part of the related hardware and the intangible
components cannot function on their own, it is treated as property, plant and equipment. Where the costs of materials
used in the development of ODM assets are prevailing, after its completion the respective asset is classified as
property, plant and equipment.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
49
Property, plant and equipment
Buildings over 20 to 33 years
Equipment and
machinery
over 5 to 10 years
Other property, plant
and equipment
over 3 to 10 years
Depreciation starts when the asset is ready for its intended use. Each part of an item of property, plant and equipment
with a cost that is significant in relation to the total cost of the item is depreciated separately. To the extent that the
Group depreciates separately some parts of property, plant and equipment, it also depreciates separately the remainder
of the item. The remainder consists of the parts that are individually insignificant. The depreciation for the remainder is
determined using approximation techniques to faithfully represent its useful life.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying
values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their
recoverable amount. The recoverable amount of property, plant and equipment is the higher of an asset’s fair value less
costs to sell and its value in use. In assessing the value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs. Impairment losses are recognized in the cost of sales caption or in
admirative expense caption.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement
of comprehensive income in the year the item is derecognized.
Expenses related to leasehold improvements are capitalized as property, plant and equipment and depreciated over the
lease period on a straight-line basis.
Construction in progress represents property, plant and equipment under construction and is stated at historical cost.
This includes the cost of construction and other direct expenses. Construction in progress is not depreciated until the
respective assets are completed and available for use.
In cases when computer software is an integral element of hardware that cannot operate without that specific
software, computer software is treated as property, plant and equipment.
Revaluations have been made with sufficient regularity (not less frequently than every 5 years) to ensure that the
carrying amount of property, plant and equipment items subject to valuation does not differ materially from that which
would be determined using fair value at the end of reporting period. Real estate (land and buildings) is revalued. The
revaluation is performed by certified valuators.
Increase in the carrying amount arising on revaluation net of deferred tax is recognized in the statement of
comprehensive income as changes in the equity caption ‘Property, plant and equipment revaluation reserve’. Decreases
that offset previous increases of the same asset are charged in the statement of comprehensive income and debited
against the revaluation reserve directly in equity; all other decreases are charged to the current year’s profit or loss.
Property, plant and equipment revaluation reserve is decreased over the useful life of the asset. Revaluation reserve
cannot be distributed in dividends, used for indemnity, reinvested in other reserves, or used for other purposes.
Revaluation of property, plant and equipment
2.5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated
depreciation and any impairment in value, except for land and
buildings that are measured at revaluated amount less
accumulated depreciation (of the buildings) and impairment losses
recognized after date of revaluation. Land is not depreciated.
Depreciation is calculated on a straight-line basis over the estimated
useful life of the asset, as follows:
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
50
Inventories
2.6. INVENTORIES
Inventories are valued at the lower of cost and net realizable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
- raw materials – purchase cost on a first-in, first-out (FIFO) basis
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale. Net realizable value is disclosed at the purchase
(production) cost less allowances made. Allowances are made for slow moving inventories which have not been sold or
used in a 24-month period.
Net realizable value
The Group’s management evaluates the net realizable value of inventories based upon the expected sales prices and
selling costs and assesses the physical condition of inventories during the annual stock count. If the net realizable
value of inventories is lower than the cost of inventories, an allowance is recorded. The Group’s management has
evaluated the net realizable value of inventories and considers that it is not necessary to make an additional significant
allowance as at 31 December 2021 (Note 23).
2.7. GRANTS
Grants received from the government and international organizations are recognized where there is reasonable
assurance that the grant will be received and all attached conditions will be complied with.
Grants received from the government and international organizations for the purchase, development or construction of
non-current assets are initially recognized as deferred income and taken to the profit or loss on a systematic basis over
the useful life of the relevant assets.
Other government grants are recognized as income on a systematic basis over the period when the Group and the
Parent Company expense the costs that the grants compensate. A government grant that becomes receivable as
compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the
Group and the Parent Company with no future related costs is recognized as income of the period in which it becomes
receivable.
Grants
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
51
2.8. PROVISIONS
Provisions are recognized when the Group and the Parent Company have a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group and the
Parent Company expect some or all of provisions to be reimbursed, for example, under an insurance contract, the
reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of comprehensive income net of any reimbursement.
The Group manufactured products that malfunction, do not correspond to the specifications or have defects may be
returned to the Group. The sole responsibility of the Group under the warranty is to repair or replace the non-
confirming or damaged product
This warranty does not apply to:
Warranty period is 1 to 2 years and set on an individual basis
Because the warranty provides the customer with the assurance that the product will work as intended for one year,
HansaMatrix accounts for this ‘assurance-type’ warranty in accordance with IAS 37 Provisions, Contingent Liabilities
and Contingent Assets, i.e. a provision is raised for the expected cost of repairing the product in the next 12 - 24
months. Assurance-type warranties do not result in a change to current practice for the recognition of revenue, i.e. this
does not represent a separate performance obligation.
Provisions
• pilot products, prototypes, preproduction units, product testing batches;
• any products repaired by the seller or third party;
• any products used wrongfully due to misuse or negligence.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
52
Leases
2.9. LEASES
The Group assesses at contract inception whether a contract is, or contains, a
lease. That is, if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
Group as a lessee
RIGHT TO USE THE ASSET
The Group recognizes right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets
are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognized,
initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-
line basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:
• Plant and machinery - 2 - 5 years
• Lease of land - up to 50 years
• Motor vehicles and other equipment - 2 to 5 years
If ownership of the leased asset transfers to the Group at
the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the
estimated useful life of the asset.
The right-of-use assets are also subject to impairment. If
there are any indications of impairment, the carrying
amount of the asset is written down to its recoverable
which is the higher of the right-of -use asset’s selling price
and its value in use recognizing impairment loss as
expense in the statement of profit or loss.
LEASE LIABILITIES
At the commencement date of the lease, the Group
recognizes lease liabilities measured at the present
value of lease payments to be made over the lease
term. The lease payments include fixed payments
(including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group
and payments of penalties for terminating the lease, if
the lease term reflects the Group exercising the option
to terminate.
Variable lease payments that do not depend on an index
or a rate are recognized as expenses (unless they are
incurred to produce inventories) in the period in which
the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the
Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit
in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.
SHORT-TERM LEASES AND LEASES OF LOW-VALUE ASSETS
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are
considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as
expense on a straight-line basis over the lease term.
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Leases
Group as lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms
and is included the profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same
basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Group and Parent Company as a lessor
Assets that are leased out under operating lease terms are recognized as property, plant and equipment at cost less
accumulated depreciation. Depreciation is calculated on a straight-line basis in order to write down each asset over its
estimated useful life to its estimated residual value.
Income from operating leases is recognized in the statement of comprehensive income on a straight-line basis over the
lease term.
Financial assets and liabilities
2.10. FINANCIAL ASSETS
The Group classifies financial assets as follows:
- financial assets at amortized cost,
- equity instruments at fair value with recognition of revaluations in other comprehensive income,
- financial assets at fair value with recognition of revaluations in the income statement,
- debt instruments at fair value with the recognition of a revaluation at fair value through the recognition of revaluation
in other comprehensive income.
Financial assets at amortized cost
A financial asset is measured at amortized cost in case it satisfies both of the following requirements and is not
classified as at FVTPL:
a) it is held within a business model whose objective is to hold assets to collect contractual cash
flows;
b) its contractual terms on specified dates ensures cash flows that are solely payments of principal
and interest.
These assets are initially measured at fair value plus transaction costs, directly attributable to their acquisition. After
the initial recognition, the assets are measured at amortized cost applying the effective interest rate method. The
amortized cost value is decreased by impairment losses. Foreign exchange gains and losses, impairment, and interest
income are recognized in profit or loss statement. On derecognition, any gain or loss is recognized in profit or loss
statement.
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Financial assets and liabilities
Equity investments at fair value
through other comprehensive
income
Upon initial recognition, the Group can choose to
irrevocably classify its equity investments as equity
instruments designated at fair value through OCI, in case
these investments a) meet the definition of equity
instrument under IAS 32 Financial Instruments and b)
and are not held for trading. The Group evaluates and
applies this classification for each instrument separately.
These instruments are initially measured at fair value
plus transaction costs, directly attributable to their
acquisition. After the initial recognition, these
instruments are measured at fair value. Dividends are
recorded in profit or loss statement. Other net gains and
losses are accumulated in OCI and are never applied or
reclassified to profit or loss statement.
Financial assets at fair value
through profit or loss
These financial instruments include financial assets
held for trading and financial assets designated upon
initial recognition at fair value through profit or loss.
Financial instruments are deemed as held for trading in
case they are planned to be sold in the short term.
Derivatives are also classified as held for trading, except
when they are hedging instruments. Financial
instruments with contractual cash flows that are not
solely principal and interest payments are classified and
measured at fair value through profit or loss. For these
instruments, directly attributable transaction costs are
recognized in profit or loss as incurred. After the initial
recognition, these instruments are measured at fair
value. Net value changes are recognized in profit or loss
statement.
Debt instruments at fair value through other comprehensive income
A debt instrument is measured at FVTOCI if it meets both of the following requirements and is not classified as at
FVTPL: a) it is held within a business model whose objective is to hold assets to collect contractual cash flows and to
sell these financial assets; and b) its contractual terms on specified dates ensures cash flows that are solely
payments of principal and interest. These assets are initially measured at fair value plus transaction costs directly
attributable to their acquisition. After the initial recognition, the assets are measured at fair value. Foreign exchange
gains and losses, interest income calculated using the effective interest method, and impairment are recognized in
profit or loss. Other net gains and losses are recognized in other comprehensive income (OCI). In case of
derecognition, gains and losses accumulated in OCI are reclassified to profit or loss
AS “HansaMatrix”
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Financial assets and liabilities
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognized (i.e., removed from the Group’s and the Parents financial statement of financial position) when:
• The rights to receive cash flows from the asset have expired or
• The trade receivable balance is subject to non-recourse factoring arrangement or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through arrangement; and either (a) the
Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Group continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group
also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
repay.
Netting of financial instruments
Financial assets and liabilities are off-set and the net amount is presented in the statement of financial position only if
there is a legal right to off-set and recognize net amount and there is an intention to settle on net basis or sell the asset
and settle the liability at the same time.
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Financial assets and liabilities
2.11. FINANCIAL LIABILITIES
The Group classifies financial liabilities as follows:
• financial liabilities at amortized cost,
• financial liabilities at fair value through profit
or loss (FVTPL).
Financial liabilities at fair value through profit or loss
A financial liability is classified as at FVTPL in case it is held-for-trading or is designated as held-for-trading in the
initial recognition. For this type of liabilities, directly attributable transaction costs are recognized in profit or loss
statement, as incurred. Liabilities at FVTPL are measured at fair value, with changes in value and interest expense
recognized through profit or loss statement.
In case the Group uses derivative financial instruments, such derivative financial instruments are initially recognized
at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value
is negative.
Derivative embedded in a hybrid contract, with a financial liability is separated from the host and accounted for as a
separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument
with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is
not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in
fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the
contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial
asset out of the fair value through profit or loss.
Financial liabilities at
amortized cost
A financial liability is measured at amortized cost in
case it is not held-for-trading and is not designated as
held-for-trading in the initial recognition. These financial
liabilities are initially measured at fair value less directly
attributable transaction costs. After the initial
recognition, these liabilities are measured at amortized
cost, using the effective interest rate.
Derecognition of financial
liabilities
The Group shall derecognise financial liabilities, then
and only when the Group's obligations have been
fulfilled, cancelled or terminated. The difference
between the carrying amount of a financial liability
and the consideration paid and payable is recognised
in the income statement..
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Financial assets and liabilities
2.12. DETERMINATION OF FAIR VALUE
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:
in the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability.
The Group measures the fair value of a financial instrument using the quoted price in an active public market for that
instrument, when available. An active market is one in which transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
In case a financial instrument measured at fair value has a bid price and an ask price, then the Group measures the
assets at a bid price and liabilities - at an ask price.
When there is no quoted price in an active market, the Group uses valuation techniques that are appropriate in the
circumstances that maximize the use of relevant observable inputs and minimize the use of unobservable inputs.
Fair value of a financial instrument applied on initial recognition is normally the transaction price.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair
values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Group recognizes transfers between the levels of the fair value hierarchy at the end of the reporting period during
which the change has occurred
2.13. IMPAIRMENT OF FINANCIAL INSTRUMENTS AND CONTRACT ASSETS
The Group recognizes an allowance for expected credit losses (ECLs) for financial assets measured at amortized cost
and contract assets. The impairment model is based on the premise of providing for expected credit losses.
Impairment is measured with one of the following approaches:
a) 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the
reporting date;
b) lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a
financials instrument.
For trade receivables and contract assets, the Group and the Parent Company apply a simplified approach – a loss
allowance is always established equal to the amount of credit losses expected over the remaining life of the asset
(lifetime ECLs).
For individually assessed financial assets that are measured at amortized cost) the IFRS 9 general approach is used,
applying the Expected Credit Losses Model, which foresees calculating the financial asset value adjustments as the
product of three variables: Exposure at Default (EAD), Loss Given Default (LGD) and the Probability of Default (PD).
For financial assets measured at amortized cost, considered to have acceptable credit risk, the ECLs are based on the
12-month ECLs. However, when there has been a significant increase in credit risk since origination, the allowance is
based on the lifetime ECLs.
AS “HansaMatrix”
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number: 40003454390
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Annual Report 2021
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Cash and cash equivalents
2.14. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with an original maturity of
three months or less. The statement of cash flows has been prepared according to the indirect method by making
adjustments to reconcile operating profit with cash flows from operating, investing, and financing activities.
Receivables
2.15. RECEIVABLES
A receivable represents the Group and Parent Company’s right to an amount of consideration that is
unconditional (i.e., only the passage of time is required before payment of the consideration is due).
The Group and the Parent Company split trade receivable balances in two portfolios based on a business
model.
Trade receivables from contracts with customers within a business model with the objective to
hold financial assets in order to collect contractual cash flows are accounted at amortized cost
and reviewed for impairment;
Trade receivables from contracts with customers held with the only objective of selling the
financial assets are accounted for at FVTPL.
Proceeds received in accordance with factoring agreements are recognized as liability to the factor when the
Group or the Parent Company remain exposed to credit risk associated with the respective debtor. When credit
risk remains with the factor, the proceeds are netted against the respective debtor balance. For the existing
factoring agreements, the Group and the Parent Company only recognize the portion of the receivable that is not
factorized in their statement of financial position - usually 10%. The portion of the receivable that is not
factorized is stated at FVTPL based on the expected cash flows.
Considering that the 10% repayment is usually done within a period of 2-3 months, the time value of money does
not significantly affect the fair value of the remaining receivable.
During 2021 approximately 40 % of sales were made using factoring arrangement.
For receivables, the Group and the Parent Company measure the ECLs based on the historical data for the last 3
years, and where the historical data are not available, make assumptions.
Factoring
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Revenue recognition
2.16. REVENUE RECOGNITION
The Group and the Parent Company have concluded
that the performance obligation for provided services
is exercised over time.
2.16.1. Sale of goods and
services
The Group sells the following products: data network
infrastucture, industrial products, Internet of Things, optics
and photonics products.
The Group and the Parent Company recognizes revenue
from sale of goods and services over time because the
goods and services delivered to the clients are highly
customized to fulfil the customer needs, and it would take
significant rework for the asset to be used alternatively.
Moreover, Group and the Parent Company are also entitled
for payment of any products made to date. Trade
receivables are generally due in 30 - 90 days after delivery.
Due to the specifics of the production cycle of the Group
and the Parent Company it is impracticable to reasonably
measure the progress towards complete satisfaction of
the performance obligation. Therefore, the Group and the
Parent Company are recognizing revenue to the extent of
the costs incurred.
2.16.2. Volume rebates
The Group and the Parent Company provide
retrospective volume rebates to certain customers once
the quantity of products purchased during the period
exceeds a threshold specified in the contra. Rebates are
only applied to the aggregate amount of goods
purchased in the relevant period (in one calendar month)
and are not attributed to other periods.
2.16.3. Significant financing
component
Generally, the Group and the Parent Company receive
short-term advances from its customers. Using the
practical expedient in IFRS 15, the Group and the Parent
Company do not adjust the promised amount of
consideration for the effects of a significant financing
component if it expects, at contract inception, that the
period between the transfer of the promised good or
service to the customer and when the customer pays for
that good or service will be one year or less.
In cases where the period exceeds one year, the
transaction price for such contracts is discounted, using
the rate that would be reflected in a separate financing
transaction between the Group and its customers at
contract inception, to take into consideration the
significant financing component.
2.16.4. Principal versus agent
consideration
In most cases the Group operates as a principal in
providing production services to the clients. However, in
some cases, the Group and the Parent Company receives
from its customers materials that are used in
manufacturing the products ordered by customers and
returned to customers. These materials are owned by
customers and are only intended for executing a
particular customer order, the Group and the Parent
Company accepts them only for processing. The cost of
the materials belonging to customers is recorded off-
balance sheet as the Group and the Parent Company
does not have the ability to direct the use of the materials
or obtain benefits from them.
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A contract asset is initially recognized for revenue earned from services because the receipt of consideration is
conditional on successful completion of the installation. Upon completion of the installation and acceptance by the
customer, the amount recognized as contract assets is reclassified to trade receivables. Expected credit loss are
recognized for contract assets.
2.16.6. Contract liabilities (prepayments received under
contracts with customers)
A contract liability is the obligation to transfer goods or services to a customer for which the Group and the Parent
Company have received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Group and the Parent Company transfer goods or services to the customer, a
contract liability is recognized when the payment is made, or the payment is due (whichever is earlier). Contract
liabilities are recognized as revenue when the Group and the Parent Company perform under the contract.
2.16.7. Income from investments
The Group and the Parent Company recognize income from investments (dividends) only when the right to receive
the payment is established.
Dividends payable to the shareholder of the Parent Company are recognized as a liability in the financial statements
for the period the shareholder of the Parent Company has authorized thereof.
2.16. Revenue recognition
2.16.5. Contract assets
2.17. Distribution of dividends
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Taxes
2.18.TAXES
2.18.1. Corporate income tax
Legal entities have not been required to pay income tax on earned profits starting from 1 January 2018 in accordance
with amendments made to the Corporate Income Tax Law of the Republic of Latvia. Corporate income tax is paid on
distributed profits and deemed profit distributions. Consequently, current and deferred tax assets and liabilities are
measured at the tax rate applicable to undistributed profits. Starting from 1 January 2018, both distributed profits and
deemed profit distributions have been subject to the tax rate of 20 per cent of their gross amount, or 20/80 of net
expense. Corporate income tax on dividends is recognized in the profit or loss as expense in the reporting period
when respective dividends are declared, while, as regards other deemed profit items, at the time when expense is
incurred in the reporting year.
Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in
equity or other comprehensive income, in which case it is recognized in equity or other comprehensive income.
2.18.2. Deferred corporate income tax
Deferred tax is provided using the liability method for all temporary differences arising between the tax bases of
assets and liabilities and their carrying value for accounting purposes. Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply to the period when the asset is realized, or the liability is settled, based on
tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are
recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realized.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, associates and joint
ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable future.
Corporate income tax on dividends and deferred income tax expense on dividends of subsidiaries, associates and
joint ventures are reported in the consolidated statement of comprehensive income.
2.18.3. Value Added Tax
Expenses and assets are recognized net of the amount of value added tax, except:
• When value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case, value added tax is recognized as part of the cost of acquisition of the asset or as part of the expense
item, as applicable,
• When receivables and payables are stated with the amount of value added tax included.
The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
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2.19. EARNINGS PER SHARE
Earnings per share are calculated by dividing the net profit after taxation for the year by the average number of
ordinary shares in issue during the year. The average number of shares in issue during the year is weighted to
consider the timing of the issue of new shares.
Earnings per share
Share-based payment
2.20. SHARE-BASED PAYMENT
Under the Senior Executive Plan (SEP), share options of the parent are granted to senior executives of the parent with
more than 12 months’ service, given that these senior executives meet their individual or company key performance
indicators. The exercise price of the share options is equal to the market price of the underlying shares on the date of
grant. The share options vest within three years from the date of grant and the senior executive remains employed on
such date.
The fair value of the share options is estimated using the price noted in the issuance regulations of 6.53 EUR. The fair
value of the options, determined at the grant date, is expensed over the vesting period, creating equity reserve for SEP
share options. Cost is recognized as employee benefits expense, together with a corresponding increase in equity
(other capital reserves), over the period in which the service and, where applicable, the performance conditions are
fulfilled (the vesting period).
The share options can be exercised without term limitations, after the three-year vesting period. There are no cash
settlement alternatives. SEP after the vesting period is entitled to receive HansaMatrix shares free of charge. The
Group accounts for the SEP as an equity-settled plan.
2.21. SUBSEQUENT EVENTS
Post-year-end events that provide additional information about the Group’s and Parent Company’s position at the
balance sheet data (adjusting events) are reflected in the financial statements. Post-year-end events that are not
adjusting events are disclosed in the notes when material.
Subsequent events
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2.22. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES
AND ASSUMPTIONS
The preparation of the financial statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and
disclosure of contingencies. The significant areas of judgments and estimates used in the preparation of the
financial statements relate to capitalization of development costs, useful life of fixed assets, allowances for
doubtful receivables and inventories and contract assets, and impairment evaluation. Although these estimates
are based on the management’s best knowledge of current events and actions, the actual results may ultimately
differ from those estimates.
The Group has assessed the potential impact of the COVID-19 pandemic on the financial statement, including
the assumption of the Group's ability to continue its activities. The management believes that the situation will
not affect the Group’s ability to continue as a going concern, as it has not had any significant operational
disruptions so far, except for the global deficit of electronic components, and such are not expected in the
future, moreover, the Group has a large enough balance of cash and cash equivalents, as well as liquid assets to
overcome the difficulties caused by short-term fluctuations in cash flows, should they arise as a result of the
situation caused by COVID-19.
The following are the critical judgments and key estimates concerning the future, and other key sources of
estimation uncertainty which exist at the reporting date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities during the next reporting period:
2.22.1. Carrying amounts of property, plant and equipment (at cost)
The Group’s management reviews the carrying amounts of property, plant and equipment and assesses whether any
indications exist that the assets’ recoverable amounts are lower than their carrying amounts. The Group’s
management calculates and records an impairment loss on property, plant and equipment based on the estimates
related to the expected future use, planned disposal or sale of the assets. Considering the planned volumes of
economic activities and possible fair values of the assets, Group’s management considers that no significant
adjustments to the carrying values of property, plant and equipment are necessary (Note 17 and Note 10).
2.22.2. Revaluation of property, plant and equipment
The revaluation of certain fixed assets of the Group (Real Estate-Buildings and Land) is carried out externally, by
certified valuers using the revenue method. The valuation is carried out according to property valuation standards and
in accordance with IFRS 13 Fair Value, based on the existing use of fixed assets that is considered the best and most
efficient. The real estate was revalued as at 31 December 2021 (Note 30).
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2.22.3. Expected credit loss
For receivables, the Group and the Parent Company measure the ECLs based on the historical data for the last 3
years, and where the historical data are not available, make assumptions using the following matrix:
Absence status Applied credit loss %
No delays 0,3%
Delayed 1-30 days 1%
Delayed 31-60 days 5%
Delayed 61-90 days 10%
Delayed 91-120 days 15%
Delayed 121-180 days 40%
Delayed 181-270 days 70%
More than 270 days late 100%
2.22.4. Investment in an associate – classification
The Parent Company shall assess whether it has control or significant influence over its investments and classify
them accordingly as investments in the subsidiaries, investments in associates or other investments.
According to this assessment, the Group has established that, although the Group owns more than 50% of the voting
shares, it does not have control over SIA Lightspace Technologies, because according to the corporate governance
documents of this company all relevant decisions regarding SIA Lightspace Technologies cannot be taken by the
representative of the Group in the Supervisory Board alone, as well as the Group's ownership share in Lightspace
Technologies does not allow the Group on its own to change the composition of the Supervisory Board of Lightspace
Technologies in order to have it under the full control of the Group.
2.22.5. Investment in SIA Lightspace Technologies /
AS Lightspace Holding – recoverable value
The recoverable value based on value in use calculations of the Parent Company's investment in Lightspace
technologies/Lightspace Holding has been determined using cash flow forecasts prepared for six years, where the
increase in turnover is determined on the basis of the planned business growth strategy, that envisages a very
significant increase in revenue and the development of the Company. The calculation of the value depends on
assumptions regarding the discount rate. In 2021, a rate of 32% was applied (after-tax WACC) (2020: 28%). Since SIA
"Lightspace Technologies" is involved in the development, production and sale of an innovative product, the
determination of the value of the investment is an essential estimate, which depends on the company's ability to
attract additional financing, achieve the growth goals and sales volumes set out in the business plan.
2.22.6. Deferred tax assets and liabilities
The management of the Group has decided not to distribute the subsidiaries’ profit in dividends until 30 June 2024.
The Group prepares high level development plan for the next 5 years, which does not provide for the payment of
dividends in the foreseeable future. The Group's profit is intended to be used for repayment of credit liabilities and
investments both for the renewal of the Group's production equipment and for the digitization of the processes. The
Parent Company controls the timing of the reversal of the temporary difference and believes that the latter will not
reverse in the foreseeable future. Deferred tax liabilities arising from the subsidiaries profit are not recognized in the
Group’s financial statements. No deferred tax liability arises from investments in associate as up to the date there
are no profits to be distributed.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
65
2.22.7. Determination of the lease term
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised. In addition the Group applies its reasonable expectations to
determine the period during which the underlying asset will be used, by considering: the broader economics of the
contract, and not only contractual termination payments (e.g. if either party has an economic incentive not to terminate
the lease such that it would incur a penalty on termination that is more than insignificant, the contract is enforceable
beyond the date on which the contract can be terminated) and whether each of the parties has the right to terminate
the lease without permission from the other party with no more than an insignificant penalty (if only one party has the
right to terminate the lease without permission from the other party with no more than an insignificant penalty, the
contract is enforceable beyond the date on which the contract can be terminated by that party).
2.22.8. Revenue recognition over time
As the Group and the Parent Company are manufacturing products that are highly customized to fulfill the customer
needs, and it would take significant rework for the asset to be used alternatively, the performance creates an asset that
the customer controls as the asset is created and finally the Group and the Parent Company are also entitled to
payment for the performance completed; the revenue is recognized over time..
2.22.9. Development costs
The Group capitalizes costs for product development projects. Initial capitalization of costs is based on management’s
judgement that technological and economic feasibility is confirmed, usually when a product development project has
reached a defined milestone according to an established project management model. In determining the amounts to be
capitalized, management makes assumptions regarding the expected future cash generation of the project and the
expected future benefits.
2.22.10. Segments
Reportable segments are operating segments or their aggregation which meet certain criteria. No less frequently than
once a year, the Group and the Parent Company assess and identify all potential business segments and determine
whether these segments should be accounted for separately. The Company reports the segment if it contributes 10% or
more of the entity’s total sales (combining internal and inter-segment sales), earns 10% or more of the combined
reported profit of all operating segments that did not report a loss (or 10% or more of the combined reported loss of all
operating segments that reported a loss), or has 10% or more of the combined assets of all operating segments.
The Group and the Parent Company have one business segment, i.e. the manufacturing services, on which specific
financial information is available that is regularly assessed by key decision-makers to allocate resources and evaluate
the performance of this segment. In addition to segment reporting, the Group and the Parent Company also disclose
the sales results by main market sectors – data network infrastructure products, the Internet of Things, industrial
products and other as well as by geographical market sectors
2.22.11. Usefullives ofintangible assetsand property, plant andequipment
The residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations
differ from previous estimates, any change is accounted for prospectively as a change in estimate under IAS 8.
Considering the decrease in the production volume and intensity of the use of property, plant and equipment in recent
years, in 2019 the Group reviewed the useful lives of the assets and concluded that part of fully depreciated assets is
still in active use. A number of assets that have been fully depreciated are still in active use. Please see Note 16 and 17.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
66
3. Changes in accounting policies and disclosures
3.1. Changes in accounting policies and disclosures
(i) Initial application of new amendments to the existing standards effective for the current reporting period
The following amendments to the existing standards issued by the International Accounting Standards Board
(IASB) and adopted by the EU are effective for the current reporting period:
• Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition and
Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance Contracts” and IFRS 16
“Leases” - Interest Rate Benchmark Reform — Phase 2 adopted by the EU on 13 January 2021 (effective for
annual periods beginning on or after 1 January 2021),
• Amendments to IFRS 16 “Leases” - Covid-19-Related Rent Concessions beyond 30 June 2021 adopted by the
EU on 30 August 2021 (effective from 1 April 2021 for financial years starting, at the latest, on or after 1
January 2021),
• Amendments to IFRS 4 Insurance Contracts “Extension of the Temporary Exemption from Applying IFRS 9”
adopted by the EU on 16 December 2020 (the expiry date for the temporary exemption from IFRS 9 was
extended from 1 January 2021 to annual periods beginning on or after 1 January 2023).
The adoption of amendments to the existing standards has not led to any material changes in the Group’s and
Parent Company’s financial statements.
(ii) Standards and amendments to the existing standards issued by IASB and adopted by the EU but not yet
effective
At the date of authorisation of these financial statements, the following amendments to the existing standards
were issued by IASB and adopted by the EU and which are not yet effective:
• Amendments to IAS 1 “Presentation of Financial Statements” - Disclosure of Accounting Policies adopted by the
EU on 2 March 2022 (effective for annual periods beginning on or after 1 January 2023),
• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” – Definition of
Accounting Estimates adopted by the EU on 2 March 2022 (effective for annual periods beginning on or after 1
January 2023),
• Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use adopted by the EU on 28
June 2021 (effective for annual periods beginning on or after 1 January 2022),
• Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous Contracts - Cost of
Fulfilling a Contract adopted by the EU on 28 June 2021 (effective for annual periods beginning on or after 1
January 2022),
• Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework with amendments to
IFRS 3 adopted by the EU on 28 June 2021 (effective for annual periods beginning on or after 1 January 2022),
• IFRS 17 “Insurance Contracts” including amendments to IFRS 17 issued by IASB on 25 June 2020 - adopted by the
EU on 19 November 2021 (effective for annual periods beginning on or after 1 January 2023),
• Amendments to various standards due to “Improvements to IFRSs (cycle 2018 -2020)” resulting from the annual
improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily with a view to removing inconsistencies
and clarifying wording - adopted by the EU on 28 June 2021 (The amendments to IFRS 1, IFRS 9 and IAS 41 are
effective for annual periods beginning on or after 1 January 2022. The amendment to IFRS 16 only regards an
illustrative example, so no effective date is stated.).
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
67
3. Changes in accounting policies and disclosures
(iii) New standards and amendments to the existing standards issued by IASB but not yet adopted by the EU.
At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the International
Accounting Standards Board (IASB) except for the following new standards and amendments to the existing
standards, which were not endorsed for use in EU as at 31 March 2022 (the effective dates stated below is for IFRS
as issued by IASB):
• IFRS 14 “Regulatory Deferral Accounts” (effective for annual periods beginning on or after 1 January 2016) -
the European Commission has decided not to launch the endorsement process of this interim standard and
to wait for the final standard,
• Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as Current or Non-
Current (effective for annual periods beginning on or after 1 January 2023),
• Amendments to IAS 12 “Income Taxes” - Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (effective for annual periods beginning on or after 1 January 2023),
• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and
Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and
further amendments (effective date deferred indefinitely until the research project on the equity method has
been concluded),
• Amendments to IFRS 17 “Insurance contracts” - Initial Application of IFRS 17 and IFRS 9 – Comparative
Information (effective for annual periods beginning on or after 1 January 2023).
The Group and the Parent Company makes further assessment on the impact of these new standards and
amendments, but the Group and the Parent Company anticipates that the adoption of these new standards and
amendments to the existing standards will have no material impact on the financial statements of the Group and the
Parent Company in the period of initial application.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
68
3. Changes in accounting policies and disclosures
3.2. CORRECTION OF PRIOR PERIOD ERRORS
In 2021, the Management of the Group/Parent Company identified that it was necessary to make corrections to
previously recognized losses from participation in SIA Lightspace Technologies. The adjustment applies only to the
Group's data. The annual report of the Group's associate company SIA Lightspace Technologies for 2020 was
approved after the submission of the Group's annual report for 2020 and error in capitalization of intangible assets
was later discovered , as a result of which the losses recognized by the Group from participation in SIA Lightspace
Technologies increased by EUR 247 thousand. In addition, other operating income was adjusted, reducing it by EUR 48
thousand. These losses and decreases in revenue were recognized in the 2020 annual report.
2020
Adjustment
2020
Restated
EUR EUR EUR
Statement of comprehensive income
Other operating income 778 946 (47 509) 731 437
Losses from interests in associates (325 146) (247 465) (572 611)
Loss for the reporting period (551 612) (294 974) (846 586)
Statement of financial position
Assets
Investments in associates 2 229 852 (247 465) 1 982 387
Other receivables 351 957 (47 509) 304 448
Equity
Loss for the reporting year (551 612) (294 974) (846 586)
Cash flow statement
Adjustments: Share of loss an associates 325 146 247 465 572 611
Adjustments: (Increase)/ decrease in receivables ( 263 468) 47 509 ( 215 959)
Earnings Per Share (0.30) (0.16) (0.46)
Diluted Earnings Per Share (0.27) (0.15) (0.42)
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
69
4. Revenue from contracts with customers
Business customers of
AS HansaMatrix are
mainly concentrated in
the Baltic and Nordic
countries. Revenue from
contracts with customers
by geographical area in
accordance with
management accounting
data can be specified as
follows:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Baltic countries 11 375 670 9 889 574 10 753 902 9 709 990
Nordic countries 5 941 772 5 006 841 5 452 472 4 511 844
Other EU countries 1 352 878 4 843 685 1 385 020 4 390 556
Other 3 291 954 2 848 882 3 767 424 2 774 328
TOTAL: 21 962 274 22 588 982 21 358 818 21 386 718
All revenue are recognised over the time. During 2021 all revenues generated in Latvia.
During 2021 sales to customers in geographical area – Latvia amounted to EUR 11 375 670 (2020: EUR 9 889 574).
Sales efforts of AS HansaMatrix are focused on the five main product types, market sectors: data network
infrastructure, the Internet of Things, industrial products, optics and photonics and other. The revenue breakdown by
product types is as follows:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Data network infrastructure 11 382 937 10 059 685 11 374 965 9 957 510
Industrial products 6 840 975 8 776 888 6 848 168 8 433 544
Internet of Things 1 803 370 1 116 571 1 593 357 1 124 017
Optics and photonic products 1 186 637 1 272 027 38 950 575 727
Other products 748 355 1 363 811 1 503 378 1 295 920
TOTAL: 21 962 274 22 588 982 21 358 818 21 386 718
All revenue constitutes one operating segment. Revenue from contracts with customers is also disclosed in Note 8.
The Group has one customer with total sales exceeding 10 % of the Group’s revenues. During 2021 Sales to this
customer amounted to EUR 8 881 532 (2020 EUR 7 584 428)
4.1. CONTRACT BALANCES
Contract assets relate to revenue earned from current production services, depending on the volume of current
production services at the end of the year.
Contract liabilities include advances received to secure the purchase of certain materials to support the production
process.
The amount of revenue recognized from contract liabilities is disclosed in Note 35.
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Trade receivables 1 652 572 755 890 782 198 367 664
Contract assets 1 487 173 2 225 865 589 232 1 020 872
Contract liabilities 1 185 335 788 670 1 064 113 694 030
TOTAL: 4 325 080 3 770 425 2 435 543 2 082 566
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
70
5. Cost of sales
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Cost of raw materials 8 521 613 10 072 050 7 454 032 8 914 802
Production process costs 3 967 356 3 695 699 10 767 996 10 609 808
Personnel costs (Note 14) 2 273 857 2 632 521 24 428 41 766
Depreciation and amortization (Notes 16 and 17) 2 112 131 1 891 521 933 793 856 717
Research costs 689 638 858 832 1 734 285 575
t.sk. personnel costs (Note 14) 334 635 368 315 - -
t.sk amortization and depreciation (Notes 16 and
17)
104 826 44 389 - -
Production facilities utilities 643 813 452 088 39 975 32 211
Transport costs 168 344 249 437 149 200 133 802
Repair and maintenance expenses 119 293 53 648 17 210 12 816
Change in allowances for slow-moving items (Note
23)
100 122 (66 784) 100 122 (68 425)
Low-value equipment 69 713 116 528 23 642 15 586
Real estate tax 10 000 10 390 8 505 8 505
Other production costs 150 131 50 313 13 644 349
TOTAL: 18 826 011 20 016 243 19 534 281 20 843 512
6. Distribution costs
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Personnel costs (Note 14) 648 804 733 943 22 224 56 297
Marketing expense 130 246 31 663 125 419 29 122
Transport expense 22 287 59 536 4 043 9 268
Business trips expense 8 672 2 468 - 1 170
Communications expense 7 849 9 608 170 401
Other sales-related costs - 19 389 - -
TOTAL: 817 858 856 607 151 856 96 258
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
71
7. Administrative expense
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Personnel costs (Note 14) 1 145 291 947 878 689 351 509 761
Depreciation and amortization (Notes 16 and 17) 370 444 346 733 238 283 178 691
Costs of professional services* 123 517 74 991 95 257 53 643
Bank services commission 97 202 74 342 91 415 70 481
Employee training, recruitment expense 49 966 53 180 3 430 1 730
Office expense 39 895 33 153 61 827 60 734
Representation expense 38 680 36 740 765 861
Costs of providing administrative functions 38 451 59 440 38 451 59 440
Transport expense 35 443 39 731 14 511 16 063
Insurance 32 753 29 217 24 789 26 158
IT expense 29 618 13 768 78 508 1 314
Non-operating expense 11 183 8 346 2 698 1 047
Communications expense 10 251 10 409 3 099 4 269
Business trips expense 5 255 6 223 5 029 6 044
Allowances for doubtful receivables (25 164) (27 426) 1 540 (30 525)
Other administrative expense 72 322 31 620 31 344 5 696
TOTAL: 2 075 107 1 738 345 1 380 297 965 407
* Includes the total fee paid to the firm of certified auditors SIA Deloitte Audits Latvia for the annual audit amounting to
EUR 39 000.
8. Other operating income
Group Parent Company
2021 2020 2021 2020
Corrected
EUR EUR EUR EUR
Income from research grant recognition* 293 990 265 267 - -
Income from EU grant recognition (one-off)** 268 811 22 130 600 258
Income from EU grant recognition (deferred
income)***
192 858 227 078 157 835 192 054
Revenue from the sale of inventory 150 111 - - -
Revenue from rent of premises, equipment 6 840 15 619 324 606 314 847
Gain on disposal of property, plant and equipment,
net
2 454 13 866 263 13 866
Income from LIAA remuneration support - 29 201 - 29 201
Currency exchange gain, net - 113 916 - 113 916
Other income 89 531 44 360 11 550 7 189
TOTAL: 1 004 595 731 437 494 854 671 331
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
72
*The revenue from research funding is as follows:
In 2021, the Company in cooperation with SIA HansaMatrix Ventspils continued to implement research No.1.2
managed by SIA LEO RESEARCH CENTRS. "Development of electronics for multifocal augmented and virtual reality
displays" supervised by the Ministry of Economics project No. 1.2.1.1/18/A/006 "Latvian electrical and optical
equipment industry competence center", which is implemented in the program "Support for the development of new
products and technologies in the system of competence centers". The project implementation deadline is 19 months
starting from May 1, 2020, but in fact the study was completed in 15 months and ended on July 31, 2021. Total costs
of the project No. 1.2. are EUR 409 488.64 (SIA HansaMatrix Innovation- 306 695.56, SIA HansaMatrix Ventspils – 102
793.08 EUR), including ERDF support funding of EUR 279 998.89 (SIA HansaMatrix Innovation – EUR 229 089.74; SIA
HansaMatrix Ventspils – 50 909,15 EUR). In 2021, the Company received ERDF funding within the framework of the 1.2
research in the amount of EUR 132 870.
In 2020, in cooperation with SIA Lightspace Technologies the Company started realization of SIA LEO petījumu centrs
and Ministry of Economics managed applied research project: research no 1.16. “Development of integrated
electronics for head position tracking and remote assistance functionality” project No. 1.2.1.1/18/A/006 “Latvian
electrical and optical equipment industry competence center” which is implemented in the measure “Support for the
development of new products and technologies in the system of competence centers”. The foreseen duration of the
project is 20 months, starting on November 1st, 2020, but in fact the study was completed on 31 December 2021, i.e.
within 14 months. Total cost of the project No. 1.16. are EUR 330 751.48 (HansaMatrix Innovation – EUR 145 021.15,
Lightspace Technologies – EUR 185 730.33), including ERDF support funding of EUR 218 585.07 (HansaMatrix
Innovation – EUR 108 765.87; Lightspace Technologies – EUR 109 819.20). In 2021, within the framework of the
research no 1.16, SIA HansaMatrix Innovation received ERDF funding in the amount of EUR 91 852.
In 2020, SIA HansaMatrix Innovation participated as the third party in the Horizon-2020 project “Next Generation
Enhanced Augmented Reality 3D Glasses for medical education, pre-procedural planning, intra-procedural
visualization, and patient rehabilitation — NGEAR 3D” (hereinafter- NGEAR).”. The foreseen duration of the project is 24
months, starting on July 1st, 2020. The total planned cost of the project is 145 625 EUR, including the European
Commission support funding 101 837.50 EUR. In 2021 the Company received as pre-financing EUR 69 268 regarding
NGEAR project.
** One-off income from the EU grant recognition represents financing received for the implementation of specific
projects during the reporting period.
***Deferred income from the EU grant recognition represents financing received for the acquisition of property, plant
and equipment, which is taken to income over the useful life of the relevant asset.
Other operating income
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
9. Other operating expense
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Currency exchange losses, net 60 153 995 59 278 -
Loss on disposal of property, plant and equipment,
net
19 479 1 794 19 479 -
Penalties 17 132 31 314 1 862 3 099
Corporate income tax on non-business related
expense
6 501 10 425 2 119 7 128
Donations - 6 807 - 3 300
Write-offs of receivables - 2 358 - 2 358
TOTAL: 103 265 53 693 82 738 15 885
73
11. Financial income
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Interest on loan Macro Riga, SIA 11 318 10 290 11 318 10 290
Interest on loan to Zinātnes Parks, SIA - - 54 720 -
Interest on loan to HansaMatrix Innovation, SIA - - 22 479 20 806
Interest from banks 103 - 103 -
TOTAL: 11 421 10 290 88 620 31 096
12. Financial costs
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Interest expense 411 919 429 534 395 962 413 781
Changes in fair value of warrants 227 518 306 555 227 518 306 555
Interest expense on lease liabilities 153 496 123 053 31 620 24 792
Directly attributable transaction costs 55 610 42 121 54 759 40 805
Change in fair value of loan - - 300 000 -
Change in fair value of a financial instruments
other than warrants
19 066 38 533 384 786 38 533
TOTAL: 867 609 939 796 1 394 645 824 466
Directly attributable transaction costs relate to the loans received from credit line and factoring agreements.
10. Impairment loss on non-financial assets
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Impairment loss on assets* (goodwill and PPE
under construction)
1 357 586 - - -
Impairment of investment in subsidiary - - 805 953 -
Other 32 123 - 32 123 -
TOTAL: 1 389 709 - 838 076 -
• In 2021, the Group recognized the losses related to its investments in SIA Zinātnes Parks, which are related to
significantly increased construction costs of new industrial objects and the change of the Group's plans regarding the
implementation of this project.
• SIA Zinātnes parks is developing high-tech industrial park in territory of Riga Airport. During 2021 the recoverable
amount of goodwill and the construction in progress has been estimated using the estimated value fair value less cost
to sell. As the basis of the value estimation the Group used the market value determined by independent valuator
based on the income approach. The fair value measurement corresponds to the Level 3 of the fair value hierarchy.
The estimated value is sensitive to the number of key assumptions. Significant assumptions in the valuation report
relate to the estimated construction costs, planned rent rates (used monthly rent rates range from 4.75 EUR per m2
for production premises to 12.00 EUR per m2 for office premises), occupancy rate (used long term vacancy of 95%),
discount rate (used 9%). In the previous year the Group assessed recoverable amount using value in use calculations
based on business strategy to develop real estate by the Group itself.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
74
13. Corporate income tax
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Corporate income tax calculated for the reporting
year on dividends
13 720 - 13 720 -
Corporate income tax on non-operating expense* 6 501 10 425 2 119 7 128
Total corporate income tax:: 20 221 10 425 15 839 7 128
* Deemed profit distributions are taxed at income tax rate, but related expense is not presented as income tax expense
but other operating expense in the statement of comprehensive income.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
75
14. Personnel costs and number of employees
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Wages and salaries 3 690 267 4 073 292 628 979 493 194
State social insurance mandatory contributions 842 079 972 829 121 573 111 762
Employee health insurance 37 960 43 398 2 662 1 457
Other personnel costs 2 985 4 813 60 1 411
TOTAL: 4 573 291 5 094 332 753 274 607 824
Including key management personnel compensation
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
MANAGEMENT BOARD
Wages and salaries 441 477 282 648 288 362 209 829
State social insurance mandatory
contributions
103 259 67 048 67 139 49 510
Share options
25 870
896 25 870 896
Other personnel expenses 1 470 1 093 1 094 896
TOTAL: 572 076 351 685 382 465 261 131
SUPERVISORY BOARD
Wages and salaries 58 696 45 716 58 696 45 716
State social insurance mandatory
contributions
9 713 10 810 9 713 10 810
Other personnel expenses 10 12 10 12
TOTAL: 68 419 56 538 68 419 56 538
The total personnel expenses are included in the following captions of the statement of comprehensive income:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Cost of sales (Note 5) 2 273 857 2 632 521 24 428 41 766
Cost of sales – under research costs (Note 5) 334 635 368 315 - -
Distribution costs (Note 6) 648 804 733 943 22 224 56 297
Administrative expense (Note 7) 1 145 291 947 878 689 351 509 761
Wages and salaries – under contract assets 29 694 223 336 - -
Wage and salaries – capitalized to fixed assets 141 010 188 339 17 271 -
TOTAL: 4 573 291 5 094 332 753 274 607 824
Group Parent Company
2021 2020 2021 2020
Average number of employees in the reporting year 183 208 13 13
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
76
15. Earnings per share
Earnings per share are calculated by dividing the net result for the year after taxation attributable to
shareholders by the weighted average number of shares in issue during the year. Diluted earnings
per share are calculated by dividing the profit of the reporting year attributable to shareholders by
the number of potential shares in the reporting period.
The table below presents the income and share data used in the computations of earnings per share for the Group:
Changes
Actual
number of
shares after
transaction
Actual number
of shares after
transaction
2020
Number of shares at the beginning of the year - 1 829 381 1 829 381
Number of shares at the end of the year - 1 829 381 1 829 381
Weighted average number of shares: 1 829 381
Number of share options for HansaMatrix AS employees
9 550
Guarantee security issued by the EIB
205 298
Potential number of shares
2 044 229
2021
Number of shares at the beginning of the year - 1 829 381 1 829 381
Akciju skaits gada beigāsNumber of shares at the end of the year - 1 829 381 1 829 381
Weighted average number of shares: 1 829 381
Number of share options for HansaMatrix AS employees
12 650
Warrant issued by the EIB
205 298
Potential number of shares 2 047 329
2021 2020
Restated
EUR EUR
Net profit attributable to shareholders (1 952 310) ( 846 586)
Weighted average number of shares 1 829 381 1 829 381
Earnings per share (EUR): (1.07) (0.46)
Net profit attributable to shareholders (1 952 310) ( 846 586)
Potential number of shares 2 047 329 2 044 229
Earnings per share (EUR): (0.95) (0.41)
On June 11, 2021 HansaMatrix paid dividends of EUR 54,881.43 (fifty-four thousand eight hundred eighty-one EUR 43 cents) or EUR
0.03 (three cents) per share.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
77
16. Intangible assets
ODM assets Other intangible assets Goodwill TOTAL
EUR EUR EUR EUR
COST
As at 31 December 2019 319 084 1 485 319 360 653 2 165 056
Additions - 276 321 - 276 321
Disposals - (38 010) - (38 010)
As at 31 December 2020 319 084 1 723 630 360 653 2 403 367
Additions 123 445 225 013 - 348 458
Disposals (1 197) (18 172) - (19 369)
Impairment (See Note 10) - - (360 653) (360 653)
As at 31 December 2021 441 332 1 930 471 - 2 371 803
ACCUMULATED AMORTISATION
As at 31 December 2019 9 086 995 672 - 1 004 758
Charge for the year - 187 470 - 187 470
Disposals ( 477) (35 218) - (35 695)
As at 31 December 2020 8 609 1 147 924 - 1 156 533
Charge for the year 39 107 237 463 - 276 570
Disposals (1 197) (17 827) - (19 024)
As at 31 December 2021 46 519 1 367 560 - 1 414 079
NET CARRYING AMOUNT
As at 31 December 2020 310 475 575 706 360 653 1 246 834
As at 31 December 2021 394 813 562 911 - 957 724
Group
Parent Company
Other intangible assets TOTAL
EUR EUR
COST
As at 31 December 2019 1 170 595 1 170 595
Additions 262 683 262 683
Disposals (8 234) (8 234)
Reclassification 18 695 18 695
As at 31 December 2020 1 443 739 1 443 739
Additions 211 422 211 422
Disposals (14 785) (14 785)
As at 31 December 2021 1 640 376 1 640 376
ACCUMULATED DEPRECIATION
As at 31 December 2019 720 844 720 844
Depreciation 161 544 161 544
Disposals (8 234) (8 234)
Reclassification 18 695 18 695
As at 31 December 2020 892 849 892 849
Depreciation 220 731 220 731
Disposals (14 785) (14 785)
As at 31 December 2021 1 098 795 1 098 795
NET CARRYING AMOUNT
As at 31 December 2020 550 890 550 890
As at 31 December 2021 541 581 541 581
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
78
16. Intangible assets
A number of intangible assets that have been fully amortized are still in active use. The total original cost value of
these assets as at the end of the year was as follows:
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Cost of amortized intangible assets 1 003 666 891 685 758 053 683 431
17.Fixed assets
Group
Land and
buildings
Machinery
and
equipment
Other
fixtures and
fittings,
tools and
equipment
Right-of-
use asset
(Note 32)
Leasehold
improvement
s
Construction
in progress
Total
EUR EUR EUR EUR EUR EUR EUR
COST/REVALUED VALUE
As at 31 December 2019
5 672 180 14 424 645 2 633 531 3 537 071 193 392 2 295 463 28 756 282
Additions
29 027 72 437 143 918 942 155 61 607 257 236 1 506 380
Disposals
- (400 223) (34 126) (212 877) - ( 961) (648 187)
Reclassification
1 020 181 655 - - - (182 675) -
As at 31 December 2020
5 702 227 14 278 514 2 743 323 4 266 349 254 999 2 369 063 29 614 475
Additions
- 382 993 172 828 1 887 833 51 524 164 788 2 659 966
Disposals
(32 123) (69 775) (49 050) (67 749) (1 781) (89 179) (309 657)
Revaluation
214 960 - - - - - 214 960
Reclassification
377 434 - - - - (377 434) -
As at 31 December 2021
6 262 498 14 591 732 2 867 101 6 086 433 304 742 2 067 238 32 179 744
ACCUMULATED DEPRECIATION/IMPAIRMENT
As at 31 December 2019
2 076 947 9 598 113 1 930 844 880 133 127 732 - 14 613 769
Charge for the year
197 111 879 589 280 987 795 881 37 157 - 2 190 725
Disposals
- (400 223) (26 860) (202 594) - - (629 677)
As at 31 December 2020
2 274 058 10 077 479 2 184 971 1 473 420 164 889 - 16 174 817
Charge for the year
199 440 867 643 247 545 975 228 20 975 - 2 310 831
Impairment of assets
- - - - - 996 933 996 933
Disposals
- (69 775) (45 532) (22 213) (1 781) - (139 301)
As at 31 December 2021
2 473 498 10 875 347 2 386 984 2 426 435 184 083 996 933 19 343 280
NET CARRYING AMOUNT
As at 31 December 2020
3 428 169 4 201 035 558 352 2 792 929 90 110 2 369 063 13 439 658
As at 31 December 2021
3 789 000 3 716 385 480 117 3 659 998 120 659 1 070 305 12 836 464
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
79
Fixed assets
Parent company
Land and
buildings
Equipment
and
machinery
Other
fixtures and
fittings,
tools and
equipment
Right-of-
use asset
(Note 32)
Leasehold
improvements
Construction
in progress
Total
EUR EUR EUR EUR EUR EUR EUR
COST/REVALUED VALUE
As at 31 December 2019
5 672 180 5 720 992 257 374 429 002 51 876 397 055 12 528 479
Additions
29 027 19 408 59 349 419 096 - 148 941 675 821
Disposals
- (391 942) (28 958) (196 719) - ( 961) (618 580)
Reclassification
1 020 181 655 81 310 - - (182 675) 81 310
As at 31 December 2020
5 702 227 5 530 113 369 075 651 379 51 876 362 360 12 667 030
Additions
- 295 982 17 463 428 037 - 35 220 776 702
Disposals
(32 122) (62 210) (38 860) (67 749) - (20 146) (221 087)
Revaluation
214 959 - - - - - 214 959
Reclassification
377 434 - - - - (377 434) -
As at 31 December 2021
6 262 498 5 763 885 347 678 1 011 667 51 876 - 13 437 604
ACCUMULATED DEPRECIATION
As at 31 December 2019
2 076 947 2 489 631 184 631 185 129 51 727 - 4 988 065
Charge for the year
197 111 498 484 41 599 136 521 149 - 873 864
Disposals
- (223 035) (28 352) (186 436) - - (437 823)
Reclassification
- 81 310 - - - 81 310
As at 31 December 2020
2 274 058 2 765 080 279 188 135 214 51 876 - 5 505 416
Charge for the year
199 440 511 323 34 560 206 022 - - 951 345
Disposals
- (62 210) (38 860) (22 213) - - (123 283)
As at 31 December 2021
2 473 498 3 214 193 274 888 319 023 51 876 - 6 333 478
NET CARRYING AMOUNT
As at 31 December 2020
3 428 169 2 765 033 89 887 516 165 - 362 360 7 161 614
As at 31 December 2021
3 789 000 2 549 692 72 790 692 644 - - 7 104 126
The Group at least once a year evaluates whether there is any indication that non-current assets are impaired. If any such
indication exists, the Group performs an impairment test to evaluate the possible impairment need.
As at December 31, 2021, the Group’s management assessed the external factors (changes in economic and regulatory
environment, market composition, interest rates, etc.) and the internal factors (changes in the purpose of use and useful life of
assets, cash flow generation capacity of assets, etc.) that might impact the value of non-current assets. Based on the assessment
performed, management has concluded that there are no indications of impairment of non-current assets as at December 31, 2021,
except for impairment of construction in progress and land (see Note 10).
A number of assets that have been fully depreciated are still in active use. The total original cost value of these assets as at the
end of the year was as follows:
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Cost of depreciated assets 7 358 294 6 984 986 351 148 406 613
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
80
Pledges and other restrictions on title
The Group has pledged its movable and immovable properties at Akmeņu street 72 and 74, Ogre, as security for all the loans granted
by AS SEB Banka (see Note 31 to the Annex).
The total depreciation costs of fixed assets and intangible assets are included in the following items of the statement of
comprehensive income:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Cost of sales (Note 5) 2 112 131 1 891 521 933 793 856 717
Costs of research and product development
(Note 5)
104 826 44 389 - -
Administrative expense (Note 7) 370 444 346 733 238 283 178 691
SUBTOTAL: 2 587 401 2 282 643 1 172 076 1 035 408
Depreciation charge included in contract assets - 1 840 - -
Depreciation charge included in fixed asset
value
- 93 712 - -
TOTAL: 2 587 401 2 378 195 1 172 076 1 035 408
Real estate revaluation
Revaluations are made with sufficient regularity (not less frequently than every 5 years) to ensure that the carrying amount of real
estate (land and buildings) does not differ materially from that which would be determined using fair value at the end of reporting
period. The revaluation is performed by certified valuators.
If land and buildings were measured using the cost model, the carrying amount would be as follows:
31.12.2021 31.12.2020
EUR EUR
Costs 3 059 703 2 682 269
Accumulated depreciation and impairment (1 244 802) (1 169 054)
Net carrying amount 1 814 901 1 513 215
Fixed assets
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
81
18. Investments in subsidiaries
Parent Company’s
investment
Financial data of investee
31.12.2021 31.12.2020 2021 31.12.2021 2020 31.12.2020
Statement
of
Statement
of
Comprehe
nsive
Compreh
ensive
Income Equity Income Equity
Company Business % EUR EUR EUR EUR EUR EUR
Subsidiaries
SIA
HansaMatrix
Ventspils
(Latvia)
Integrated production
in Ventspils
manufacturing plant
100 426 862 426 862 41 870 1 338 419 190 862 1 296 548
SIA
HansaMatrix
Innovation
(Latvia)
New product
development;
creation and
licensing of
intellectual property;
prototype production
100 300 000 300 000 81 268 965 001 32 964 883 733
SIA
HansaMatrix
Parogre
(Latvia)
Integrated production
at Pārogre
manufacturing plant
100 200 000 200 000 259 782 1 241 170 190 793 981 388
SIA Zinātnes
parks (Latvia)
since
30.04.2019.
Development of
infrastructure of hi-
tech industrial park in
the territory of Riga
airport
74,67 from
30.04.2019/
100% from
30.09.2020
- * 805 953 (1 114 392) (663 125) (10 824) 451 266
AS Lightspace
Holding
(Latvia) since
27.12.2021.
100%
Voting
shares
9 396 268 - - 9 579 756 - -
Total subsidiaries 10 323 130 1 732 815 (731 472) 12 461 221 403 795 3 612 935
Investments in subsidiaries
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
* The investment value is fully impaired during 2021 (see Note 10).
82
SIA HansaMatrix Ventspils
(hereinafter – HansaMatrix Ventspils) is a subsidiary,
established on 1 November 2005 (until 26 April 2016
named SIA Ventspils Elektronikas Fabrika). The
Company was established in order to create for AS
HansaMatrix a second manufacturing plant at a
sufficient distance from the Riga region to have a
reasonably separate labor market. The creation of a
second manufacturing plant was necessary minimize
the labor availability risks by placing HansaMatrix plants
in different regions of Latvia.
Currently, HansaMatrix Ventspils ensures integrated
production services mostly for clients who require box
build processes. The business model is to sell
production services to the Parent Company, which
manages the added value chain from raw materials and
component sourcing to selling the final product to the
client.
As at 31 December 2021, the equity of HansaMatrix
Ventspils was EUR 1 338 thousand and the profit for
2021 amounted to EUR 42 thousand. The Parent
Company intends to increase its orders to the
subsidiary, and to continue increasing its contracting
with the subsidiary. HansaMatrix equity exceeds the
investment’s net carrying amount in the Parent
Company’s balance sheet, which is EUR 427 thousand
as at 31 December 2021. The Parent Company
considers the investment in HansaMatrix Ventspils as
fully recoverable.
SIA HansaMatrix Pārogre
(hereinafter– HansaMatrix Pārogre) is a subsidiary,
established on 30 September 2015 to transform the
business model of the Pārogre (Ogre) manufacturing
plant, namely, from a structural unit of the Parent
Company to a separate related entity.
HansaMatrix Pārogre offers integrated manufacturing
services mostly to those clients, who need high
complexity manufacturing processes, such as printed
circuit boards and miniaturized modules, or box build
processes. The business model entails selling monthly
manufacturing services to the Parent Company, who
manages the added value chain from raw materials and
component sourcing to selling the final product to the
client.
On 4 June 2019, HansaMatrix, the sole shareholder of
HansaMatrix Pārogre, increased its share capital from
EUR 2800 to EUR 200 000 by issuing and paying up 197
200 new shares with a par value EUR 1 each. After the
capital increase, HansaMatrix Pārogre capital consists
of 200 000 shares with a nominal value of EUR 1 each.
As at 31 December 2021, the equity of HansaMatrix
Pārogre equity was EUR 1 241 thousand, and the profit
for 2021 was EUR 259 thousand. The Parent Company
intends to expand orders to HansaMatrix Pārogre in the
future, and make greater use of its capacities.
HansaMatrix Pārogre equity exceeds the net carrying
amount of the investment in the Parent Company’s
balance sheet, which was EUR 200 000 as at 31
December 2021. The Parent Company considers the
investment in HansaMatrix Pārogre as fully recoverable.
Investments in subsidiaries
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
83
Investments in subsidiaries
SIA HansaMatrix Innovation
hereinafter– HansaMatrix Innovation) is a subsidiary, established on 6 August 2014 (until 26 April 2016 known as SIA
Mārupes Elektronikas Tehnoloģijas). The Company was established to develop new products, automation solutions
and innovations, as well as to develop a rapid industrialization organization, including the manufacture of prototypes,
offering a “fast time to market” solution for new products.
Starting from Q1 2017, the HansaMatrix Group has concentrated all new product and technology development
activities and assets in its 100% subsidiary HansaMatrix Innovation SIA.
In recent years, teams of engineers and researchers at HansaMatrix Innovation R&D have developed world-class
competencies in some directions of electro-optical use, such as AR/VR (virtual and augmented reality) hardware;
heads up display optical systems, fast structured light projection systems or 3D robotic vision systems. The
development of medical products complies with ISO13485 quality management system and EN60601-1 safety
standards. Experience has been gained in a number of new technical areas, including high-precision current
monitoring and plastic-molding technology.
In 2021, HansaMatrix Innovation's engineering competencies were transferred mainly to HansaMatrix associate
company SIA Lightspace Technologies, HansaMatrix within the framework of other companies in the group the
capacity of engineers is used for industrialization and development of existing customer products as needed.
HansaMatrix Innovation continues to manage its R&D-related assets without further providing of R&D services to the
Group's companies or to third parties.
The share capital of SIA HansaMatrix Innovation is EUR 300 000 and consists of 3 000 shares. The par value of each
share is EUR 100. The shares are owned by AS HansaMatrix (100%).
As at 31 December 2021, the equity of HansaMatrix Innovation was EUR 965 thousand, and the profit for 2021 was
EUR 81 thousand. The company’s equity exceeds the net carrying amount of the investment the Parent Company’s
balance sheet, which was EUR 300 thousand as at 31 December 2021. The Parent Company considers the investment
in HansaMatrix Innovation as fully recoverable.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
84
SIA Zinātnes parks
(hereinafter – Zinātnes parks) was established to develop hi-tech products for electronics and optics companies as
well as infrastructure for an industrial park at Riga Airport.
In order to strengthen the paid-up capital of SIA Zinātnes parks, on 29 April 2019, HansaMatrix increased its capital
participation in SIA Zinātnes parks to 74.67% by paying up according to the decision of SIA Zinātnes parks shareholders
newly issued 200 (two hundred) capital shares of the Company in the amount of EUR 800 thousand, including EUR 8
thousand the value of share capital and EUR 792 thousand share premium. The capital was paid up by partially
converting the previously issued HansaMatrix investment loan to SIA Zinātnes parks.
Following the transaction, the SIA Zinātnes parks shareholder structure is the following: 74.67% – HansaMatrix, 9.33%
– Latvijas Elektrotehnikas un elektronikas rūpniecības asociācija, 8% – AS SAF Tehnika and 8% – SIA LEO Pētījumu
centrs.
On 25 September 2020, HansaMatrix acquired 25.33% of the shares of SIA Zinātnes parks for EUR 5 thousand and SIA
Zinātnes parks became a 100% subsidiary of HansaMatrix.
As at 31 December 2020, the balance of the convertible investment loan issued by HansaMatrix to Zinātnes parks
amounted to EUR 1,066 million. The loan was issued and used for taking over a lease on a land plot of 4.51 ha, the
purchase of a partially constructed building and designing the construction of industrial premises with a total area of 26
thousand m2 on the Riga International Airport territory. The loan agreement provides that the loan can be either repaid
or refinanced in the future. Besides, HansaMatrix reserves the right to request a conversion of the loan into share
capital at a par value. Part of the loan in the amount of EUR 0.8 million was converted to Zinātnes parks equity on 29
April 2019.
On the date of making the additional investment, the Group gained control over Zinātnes parks. It’s previously held
equity investment of 24% was remeasured to fair value at the date of the business combination and formed part of the
consideration transferred.
Since April 30, 2019 SIA Zinātnes parks belongs to AS HansaMatrix Group.
In 2021, the Group and the Parent Company carried out a value revaluation for investments in SIA Zinātnes parks of
EUR 1,172 million due to significantly increased construction costs of new industrial facilities.
At the end of the reporting period, the total investments of the Parent Company in SIA Zinātnes parks amounted to EUR
756 thousand, which 100% consists of a convertible loan.
At the end of the reporting period, the value of the Group's assets related to investments in SIA Zinātnes parks
amounted to EUR 1 056 thousand, which consists 100% of the capitalized costs of establishingfixed assets.
The investments received from HansaMatrix are used for land plot rental payments to VAS Starptautiskā lidosta Rīga,
the coverage of property management costs and loan repayments to AS SEB banka.
The value of the investments of the Group and the Parent Company in SIA Zinātnes parks has been determined using
an evaluation prepared by an independent real estate appraiser (see Note 10).
Investments in subsidiaries
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
85
Investments in subsidiaries
INCOME FROM INVESTMENTS IN SUBSIDIARIES
In 2021 and 2020, the Parent Company did not receive any dividends from its subsidiaries.
AS Lightspace Holding
After evaluating strategic development opportunities in order to ensure both the increase in the value of shareholder
investments and the achievement of further strategic development goals, HansaMatrix started the reorganization
process at the end of 2021.
Upon its commencement, the Company established a subsidiary company AS Lightspace Holding, investing as a
contribution in kind all 17,445 or 67.7% of Lightspace Technologies' shares owned by the Company with a value of
EUR 8,671 thousand and HansaMatrix's amounts due from Lightspace Technologies in the amount of EUR 690
thousand, as well as invested EUR 35 thousand in share capital.
The Supervisory Board of HansaMatrix has approved the commencement of the reorganization process of
HansaMatrix, in which the shares of Lightspace Holding owned by the Company will be divested from HansaMatrix,
as a result of the reorganization, by establishing a new acquiring company.
The division of HansaMatrix will be carried out in compliance with the rights of all HansaMatrix shareholders, the
Company's and creditors' rights, and will be carried out in accordance with the possible legal form.
For strategic reasons, HansaMatrix's reorganization decision is currently postponed indefinitely. In the event that the
reorganization process is resumed, shareholders will be presented with a detailed reorganization decision at least a
month in advance.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
86
19. Loan to subsidiary
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Convertible loan to SIA Zinātnes parks - - 1 421 720 1 066 200
Changes in fair value of loan to SIA Zinātnes parks - - (665 720) -
Loan to SIA HansaMatrix Innovation - - 954 855 916 876
TOTAL: - - 1 710 855 1 983 076
Short-term
- - 756 000 1 066 200
Long-term
- - 954 855 916 876
20. Investments in associates
The contribution of the
Parent Company
Financial data of the investee
31.12.2021 31.12.2020 2021 31.12.2021 2020 31.12.2020
Income
Statement
Restated Restated
(unaudited)
Equity
(unaudited)
Income
statement
Equity
Company Business % EUR EUR EUR EUR EUR EUR
Associate
SIA
Lightspace
Technologies
(Latvia)
Development
and
commercializati
on of 3D display
technologies
49,86 % /
67,70%
from
15.11.2021
- 3 709 889 (1 604 042) 7 806 532 (1 124 413) 3 124 150
Total associates
- 3 709 889 (1 604 042)
7 806 532
(1 124 413) 3 124 150
Investments in associates are stated in the consolidated financial statements under
the equity method.
Convertible loan to SIA Zinātnes parks is measured at the fair value with a change in profit or loss.
The loan to SIA HansaMatrix Innovation is measured according to the amortized cost method.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
87
Investments in associates
SIA Lightspace Technologies
(hereinafter – Lightspace Technologies) was established on 12 February 2014 as a subsidiary of SIA EUROLCDS. In
2016, SIA EUROLCDS was restructured, and SIA Lightspace Technologies was split off from it. As a result, on 9 March
2016 AS HansaMatrix acquired 451 shares or 16.11% of the share capital of SIA Lightspace Technologies,
proportionate to its share capital in SIA EUROLCDS.
On 10 January 12017, the investment loan to SIA Lightspace Technologies of EUR 200 thousand was converted into
equity shares. After the conversion, the HansaMatrix held 866 shares or 17.21% of the share capital of SIA Lightspace
Technologies.
On 21 April 2017, AS HansaMatrix signed an agreement with KS AIF Imprimatur Capital Technology Venture Fund on
granting the next investment round of EUR 799 365 to SIA Lightspace Technologies. Accordingly, AS HansaMatrix
planned to invest EUR 649 635, which were paid in 2017 increasing its shareholding in SIA Lightspace Technologies to
33.07%.
On 23 May 2017, AS HansaMatrix signed an agreement with Hornell Teknikinvest AB on purchasing 14.21% of its
shares in SIA Lightspace Technologies after which AS HansaMatrix became the owner of 47.28% of the shares in SIA
Lightspace Technologies.
On 8 May 2018, SIA Lightspace Technologies increased its share capital by issuing 7 186 new shares. After the share
capital increase, the Company’s share capital is EUR 13 871 and consists of 13 871 shares.
The share capital was increased as follows:
a) KS BaltCap Latvia Venture Capital Fund acquired 4 300 new shares of SIA Lightspace Technologies via a
contribution in kind, i.e. contributing 1 117 shares or 34.33% of equity interest in SIA EUROLCDS worth of
EUR 892 501.48;
b) HansaMatrix acquired 2 386 new shares of SIA Lightspace Technologies via a contribution in kind, i.e.
contributing 360 shares or 11.06% of equity interest in SIA EUROLCDS worth of EUR 287 646.06, and via
cash contribution of EUR 483 000 from the AS HansaMatrix’ operating cash flow;
c) and Ilmārs Osmanis, Chairman of the Board of HansaMatrix, acquired 500 new shares of SIA Lightspace
Technologies via a cash contribution of EUR 500 EUR.
After the share capital increase, the breakdown of the share capital of SIA Lightspace Technologies was as follows:
44.08% - KS BaltCap Latvia Venture Capital Fund; 39.99% - AS HansaMatrix; 9.34% - KS AIF Imprimatur Capital
Technology Venture Fund; 3.60% - Ilmārs Osmanis, 2.99% KS AIF Imprimatur Capital Seed Fund.
The new shares of SIA Lightspace Technologies were paid via the above contributions in kind on 26 April 2018 as
follows: the title to the 360 shares or 11.06% in SIA EUROLCDS owned by HansaMatrix and 1 117 shares or 34.33% in
SIA EUROLCDS owned by KS BaltCap Latvia Venture Capital Fund was transferred to SIA Lightspace Technologies
(stock swap).
As a result of the transaction, Lightspace Technologies has obtained 76.12% of the shares in its main supplier SIA
EUROLCDS thus ensuring an optimal business structure and reducing supply chain risks; moreover, after the
transaction, SIA EUROLCDS is no longer an associate of HansaMatrix. The remaining 23.88% of the shares in SIA
EUROLCDS belong to Hornell Teknikinvest AB, a company incorporated in Sweden.
On 28 July 2018, SIA MACRO RĪGA acquired 1620 shares or 11.68% of equity interest in SIA Lightspace Technologies
from the fund KS BaltCap Latvia Venture Capital Fund managed by SIA BaltCap AIFP. As a result the share capital was
split among the shareholders of SIA Lightspace Technologies as follows: AS HansaMatrix – 39.99%, KS BaltCap Latvia
Venture Capital Fund – 32.40%, KS AIF Imprimatur Capital Technology Venture Fund - 9.34%, Ilmārs Osmanis – 3.6%,
KS AIF Imprimatur Capital Seed Fund – 2.99%.
In order to strengthen the paid-up capital of SIA Lightspace Technologies, on 30 September 2019, HansaMatrix
increased its equity interest in SIA Lightspace Technologies to 49.86% by paying up the new 2730 (two thousand
seven hundred thirty) shares of SIA Lightspace Technologies issued according to the decision of its shareholders,
dated 30 September 2019, and amounting to EUR 1.5 million or EUR 550 each. The payment was made through
conversion of the convertible loan.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
88
Investments in associates
Following the transaction, the shareholding structure of Lightspace Technologies is the following: 49.86% –
HansaMatrix. 27.07% – BaltCap Latvia Venture Capital Fund, 12.77% – Ilmārs Osmanis, 7.8% – Imprimatur Capital
Technology Venture Fund, 2.5% – Imprimatur Capital Seed Fund.
In 2021 HansaMatrix has not made additional investments in SIA Lightspace Technologies, but the loan issued by
HansaMatrix to SIA Lightspace Technologies in the amount of EUR 4.96 million was converted to equity in full.
On 15 November 2021, Lightspace Technologies, associate of HansaMatrix, increased its share capital by issuing 9,168
new shares. After the increase of the Company's share capital, its share capital is EUR 25 769 and consists of 25 769
capital shares.
The share capital was increased by the largest shareholder, HansaMatrix, by making a financial contribution in the form
of an existing convertible loan of EUR 4,96 million, thus acquiring all the new shares.
On December 27, 2021 HansaMatrix established AS Lightspace Holding, investing in its equity all 17,445 or 67.7% of
Lightspace Technologies' shares with a value of EUR 8,672 thousand and HansaMatrix's amounts due from Lightspace
Technologies in the amount of EUR 690 thousand, as well as invested EUR 35 thousand in the share capital in
accordance with the approval of HansaMatrix Supervisory Board.
Distribution of share capital of Lightspace Technologies is as follows: 67.70% AS Lightspace holding; 17,44 % KS
BaltCap Latvia Venture Capital Fund AIF KOM; 8.23 % Ilmārs Osmanis; 5,03 % KS AIF Imprimatur Capital Technology
Venture Fund KOM; 1,61 % KS AIF Imprimatur Capital Seed Fund KOM.
At the end of the reporting period, the investments of the 100% owned subsidiary AS Lightspace Holding by the Parent
Company amounted to EUR 8 672 thousand investments in SIA Lightspace Technologies, that consisted of paid-up
capital.
At the end of the reporting period, the value of the Group's assets related to investments in SIA Lightspace
Technologies amounted to EUR 6 107 thousand. (accounted for at a consolidated level using the equity method).
Investments in SIA "Lightspace Technologies"
Group
*SIA Lightspace Technologies annual report for 2020 was approved after submission of the Group's annual report for 2020, as a
result of which the recognized losses from participation increased by EUR 247 465, additionally the other income from economic
activity was adjusted, reducing them by EUR 47 509. These losses and decreases in revenue were recognized in the 2021 annual
report.
** Until 15 November 2021, the Group's share in equity was 49.86%, afterwards – 67.70%.
2021 2020*
Restated
EUR EUR
Group's share SIA Lightspace Technologies 49.86% / 67.70% 49.86%
Value of the investment at the beginning of the year 1 982 387 2 554 998
Conversion of the loan into shares 4 961 733 -
SIA Lightspace Technologies loss for the year attributable to majority
shareholders
(1 604 042) (1 124 413)
Group’s share of loss of an associate recognized in the income
statement
( 837 321) ( 572 611)
Investment balance sheet value (Group) 6 106 799 1 982 387
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
2021 2020
Restated
EUR
EUR
Net assets of associate (unaudited) 7,806,532 3,124,150
Less: Revaluation of production equipment not accounted by the Group (1399 887) -
Net assets of associate excluding effect of revaluation
6 406 645
3 124 150
Proportion of the Group's ownership interest in the associate
4 337 299
1 557 701
Effect of conversion of convertible loans to equity without speceific allocation to the
underlying assets and liabilities of the investee
1 769 500
424 686
Investment balance sheet value (Group)
6 106 799
1 982 387
89
The recoverable amount based on value in use of investment in Lightspace Technologies is determined on the basis
of the cash flow projections for six years, where the increase in turnover is determined on the basis of the planned
business growth strategy, which envisages a very significant increase in revenue. The calculation of the value depends
on assumptions regarding the discount rate. In 2021, a rate of 32% was applied (after-tax WACC) (2020: 28%). Since
SIA Lightspace Technologies is engaged in the development, production and sale of an innovative product, the
determination of the value of the investment is a significant estimate, which depends on the company's ability to
attract additional financing, achieve the growth goals and sales volumes set out in the business plan.
In 2021, the consolidated, unaudited revenue of SIA Lightpace Technologies amounted to EUR 0.70 million (EUR 0.52
million in 2020) and the reporting year was completed at a net loss of EUR 1,64 million compared to the net loss result
of EUR 1.24 million in 2020. As at 31 December 2021, Lightspace Technologies had total assets of EUR 11.6 million
compared to EUR 10,8 million EUR at the end of the previous reporting year. At the end of 2021, Lightpace
Technologies' assets consisted of intangible assets (intellectual property, patents and licenses and other goodwill)
63%, property, plant and equipment 28% and current assets 9% of total assets, financed with equity 55%, long-term
liabilities 19% and current liabilities 26% of the total value of assets. In 2021, Lightspace technbologies did not pay
dividends.
Investment loans to associates
Investments in associates
Koncerns
31.12.2021 31.12.2020
EUR EUR
Convertible loan to SIA "Lightspace Technologies" 4 961 573 4 461 446
Loan increase 160 500 127
Conversion of the loan into shares (4 961 733) -
Total - 4 961 573
Historically, the convertible interest-free investment loan to Lightspace Technologies for financing the development of
3D imaging technologies was issued in 2017, 2018, 2019 and 2020, and as at 31 December 2021 amounted to EUR
4.962 million. In 2021, the loan was technically increased by 160 EUR and its 100% conversion was carried out into an
investment in equity.
The purpose of the loan to SIA Lightspace Technologies is the development of optically deep 3D image display
technologies and innovative product development on the basis thereof. One of the assets of SIA Lightspace
Technologies is the 100% owned SIA Lightspace Technologies, Inc. (Delaware), which in turn has approximately 10
patents on volumetric multi-planar 3D displays; the latter secures the intellectual property rights for this innovation in
most of the world, including the USA, Europe, China, Korea and other territories.
It is also a part of AS HansaMatrix development strategy envisioning equity investments in companies which have a
synergy with AS HansaMatrix integrated manufacturing service and with HansaMatrix Innovation engineering and
knowledge resources, and which can lead to new, high value-added product manufacturing within 3 to 5 years.
The Group does not have control over SIA Lightspace Technologies because, according to the
corporate governance documents of this company, all relevant decisions regarding SIA
Lightspace Technologies cannot be taken by the representative of the Group in the Supervisory
Board alone, as well as the Group's ownership share in Lightspace Technologies does not allow
the Group on its own to change the composition of the Supervisory Board of Lightspace
Technologies in order to have it under the full control of the Group.
Convertible loan to SIA "Lightspace Technologies" is measured ar fair value with a change in profit or loss.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
90
21.Investments in other companies
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
% EUR EUR EUR EUR
Investments
SIA "LEO RESEARCH CENTRE"
(Latvia)
10,43 - - 711 711
SIA "LEO RESEARCH CENTRE"
(Latvia)
15,6 995 996 - -
Buildit Latvia Seed Fund (Latvia)
6,67 44 168 24 671 44 168 24 671
SIA "LEITC" (Latvia)
4,25 16 419 16 419 16 419 16 419
TOTAL: 61 582 42 086 61 298 41 801
Strategic investments in service organizations:
SIA LEO PĒTĪJUMU CENTRS was established on 27 July 2010 by 15 companies and research institutions in Latvian
Electronics and Optics Cluster. AS HansaMatrix owns 711 of 6 392 shares, representing 11.12% of the total shares. SIA
HansaMatrix Ventspils owns 284 of 6 392 shares, or 4.44%. Together investments by the Group in SIA LEO PĒTĪJUMU
CENTRS total 995 shares, representing 14.6% of the total 6 392 shares in the company or 15.56%.
The company was established to administer projects for the competence center for companies working in the
electronics and optics sector. AS HansaMatrix and SIA HansaMatrix Innovation participate in grant programs managed
by SIA LEO PĒTĪJUMU CENTRS.
SIA "LEITC" was established on 14 July 2011. On 12 September 2012, in exchange for writing off a EUR 14 929 zero-
interest loan to Latvian Electrical Engineering and Electronics Industry Association, AS HansaMatrix acquired 79 shares
in SIA LEITC, representing 3.95% of the share capital.
On 14 July 2014, SIA LEITC renominated its share capital in the EUR; as a result, the entity’s total share capital was EUR
2 840 as the par value of each share changed. Accordingly, the number of the entity’s shares owned by AS HansaMatrix
increased from 79 to 112.
On 17 October 2017, AS HansaMatrix entered into an agreement with LSIA ARCUS ELEKTRONIKA on the acquisition of 9
shares or 0.32% of the shares in SIA LEITC. After the acquisition date, AS HansaMatrix owns 4.25% of the shares in SIA
LEITC.
The company was established in cooperation with other industry partners, to create and manage the only accredited
electromagnetic compatibility testing laboratory in the Baltics, which significantly speeds up the compliance process for
CE and FCC standards during the development of new products.
The fair value of the investment of AS HansaMatrix in SIA LEITC and SIA LEO PĒTĪJUMU CENTRS is based on the
company’s book value of equity. The assessment showed that as at 31 December 2021 the carrying amount of the
investment of AS HansaMatrix in SIA LEITC and SIA LEO PĒTĪJUMU CENTRS corresponded to the fair value of this
financial instrument.
On 12 June 2018, HansaMatrix entered into a subscription agreement with SIA AIFP Buildit Latvia committing to invest
EUR 150 000 EUR and become a 6.67% partner in KS Buildit Latvia Seed Fund AIF (hereinafter – the Fund). The Fund is
a VAS Latvijas Attīstības finanšu institūcija Altum co-operational acceleration fund managed by SIA AIFP Buildit Latvia.
KS Buildit Latvia Seed Fund AIF plans investing in one period maximum up to EUR 250 thousand in one start-up
focusing on the Internet of Things and hardware sectors. The investment corresponds to the strategy of HansaMatrix
facilitating knowledge exchange and creating synergies to the company through the cooperation with start-ups.
The investment period of the Fund is limited to 5 years from the first conclusion date provided by the Limited
Partnership Agreement, namely, till 20 June 2023. The deadline for the Fund operations is set by 20 June 2026. The
meeting of the Fund’s investors may decide on the extension of its operations by one year. No more than two one-year
extension decisions may be passed.
HansaMatrix determines the fair value of investments in the Fund using the net asset value of the Fund, relying that the
Fund, as described in the management report and notes to the Fund annual report, has established and applies the
procedures of fair value measuring in its financial reports.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
91
22. Other financial assets and liabilities
Other financial assets
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
% EUR EUR EUR EUR
Right to acquire shares
Airdog Inc (USA) 1,45 115 692 115 692 115 692 115 692
Accumulated decrease in fair value (94 518) (77 128) (94 518) (77 128)
Proceeds from sales (21 174) - (21 174) -
TOTAL: - 38 564 - 38 564
On 8 October 2018, AS HansaMatrix entered into a warrant agreement with SIA Airdog and Airdog Inc (incorporated in
Delaware, USA). The agreement grants AS HansaMatrix a right to acquire 365 235 preferred shares (Series A) in Airdog
Inc Series for 0.001 USD per share until 9 October 2028. The value of the potentially obtainable shares amount to USD
246,460.84 as a compensation for the outstanding receivable amounts and other balances due from SIA Airdog to AS
HansaMatrix.
The fair value of Airdog Inc. (USA) preferred share warrants owned by HansaMatrix is determined on the basis of the
asset purchase agreement of 16 March 2020 signed by Airdog, Inc., a company registered in Delaware (USA), and SIA
Airdog (as Sellers) and a U.S. based technology company as the Buyer to sell and transfer to the Buyer certain assets of
the Sellers, implying that after settling the Sellers’ liabilities the remaining amount is to be distributed to the holders of
Series A shares (preferred shares) of Airdog Inc.
On April 21, 2021, HansaMatrix converted its Airdog Inc. series A preferred share options and acquired 365,235 Airdog
Inc. series A preference shares, while on September 16, 2021, Airdog Inc. made a payment to HansaMatrix under the
above-mentioned purchase sale agreement of USD 25,035.68 (EUR 21,174).
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
EIB warrants 1 880 003 1 652 485 1 880 003 1 652 485
TOTAL: 1 880 003 1 652 485 1 880 003 1 652 485
On 3 December 2018 HansaMatrix signed a EUR 10 million financing agreement with European Investment Bank (EIB)
to expand its manufacturing capacity and build a more all-round business model. The facility is made possible by the
European Fund for Strategic Investments (EFSI), the core of the Investment Plan for Europe.
The financing will support HansaMatrix’ ongoing growth strategy and the ongoing shift from manufacturing towards
offering a full range of services, including value added design, engineering and aftermarket services. The financing will
also help HansaMatrix boost its research and development activities as well as advance its 3D-image display
technology developed by Lightspace Technologies. All investments will be made in Latvia, at the existing sites of
HansaMatrix, namely, in Mārupe, Ogre and Ventspils.
On 6 December 2018, meeting the conditions of the EUR 10 million financing agreement with EIB, HansaMatrix issued
205 298 warrants that are held by EIB and can be converted at the holders’ discretion into 205 298 HansaMatrix shares
via a new share issue provided that as a result of the new share issue EIB obtains 10% of the HansaMatrix’ total share
capital.
AS HansaMatrix fulfilled all the conditions of the financing agreement with EIB and on 19 December 2018 received the
first tranche of EUR 5 000 000.
The EIB warrants are classified as financial liabilities at fair value through profit or loss (FVTPL). The fair value of
warrants is determined using the Black-Scholes model. The estimate depends, inter alia, on the average weighted
share market price for the period of last quarter as at the reporting date, the purchase price of the option (1 EUR per
share), the average stock price fluctuation rate (volatility) of the last 4 years – 44.19%, the term of the contract and
other criteria.
Other financial liabilities
EIB Convertible warrants securities are measured at fair value through profit or loss.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
92
23. Inventories
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Raw materials and consumables (at cost) 4 300 684 2 217 157 3 975 594 1 806 512
Allowances for raw materials and consumables (344 911) (244 851) (339 598) (239 476)
TOTAL: 3 955 773 1 972 306 3 635 996 1 567 036
The total value of inventories used amounted to EUR 8 526 407 in 2021, and EUR 9 483 287 in 2020.
Movement in allowances for slow-moving items:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
At the beginning of the year 244 851 311 635 239 476 307 901
Decrease in allowance (52 140) (140 805) (50 495) (139 770)
Created in the reporting year 152 200 74 021 150 617 71 345
At the end of the year 344 911 244 851 339 598 239 476
Changes in allowances are recognized under cost of sales (Note 5 to the Annex).
The Group has pledged its inventories as security for all the loans granted by AS SEB banka (Annex Note 31).
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
93
24. Trade receivables from contracts with customers
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Trade receivables without factoring 1 165 568 624 596 304 101 124 883
Allowances for expected credit
losses/doubtful receivables
(4 336) (29 500) (2 108) ( 568)
Net receivables at amortised cost: 1 161 232 595 096 301 993 124 315
Receivables under factoring arrangements
(10% of original amount) at Fair value
492 469 160 794 492 469
145 592
TOTAL: 1 653 701 755 890 794 462 269 907
On 11 December 2018, HansaMatrix signed new factoring agreements with SEB līzings for the total amount of EUR
2.41 million to be used for financing of working capital and operations, including export transactions. The agreements
expire on 22 December 2021.
Trade receivables are non-interest bearing and are generally on 30-60 days’ terms.
As at 31 December 2021, the ageing analysis of the receivables may be specified as follows
Total Not past due Past due
<30 30-60 60-90 90-120 >120
EUR EUR EUR EUR EUR EUR EUR
Applied ECL %
0.30% 1% 5% 10% 15% 40%-100%
Group
Other trade receivables, gross 1 165 568 1 022 294 121 167 10 115 10 000
-
1 992
Allowances for expected
credit losses
(4 336) ( 664) (1 212) ( 468) - - (1 992)
2021 1 161 232 1 021 630 119 955 9 647 10 000 - -
Parent Company
Other trade receivables, gross 304 101 174 320 120 413 9 368 - - -
Allowances for expected
credit losses
(2 108) ( 435) (1 204) ( 469)
- -
-
2021 301 993 173 885 19 209 8 899 - - -
Total Not past due Past due
<30 30-60 60-90 90-120 >120
EUR EUR EUR EUR EUR EUR EUR
Applied ECL %
0.30% 1% 5% 10% 15% 40%-100%
Group
Other trade receivables, gross 624 596 86 359 159 238 23 269 121 76 053 279 556
Allowances for expected
credit losses
(29 500) ( 138) ( 440) ( 314) ( 24) (10 584) (18 000)
2020 595 096 86 221 158 798 22 955 97 65 469 261 556
Parent Company
Other trade receivables, gross 124 883 47 790 66 766 10 327 - - -
Allowances for expected
credit losses
( 568) ( 138) ( 425) ( 5) - - -
2020 124 315 47 652 66 341 10 322 - - -
As at 31 December 2020, the ageing analysis of the receivables may be specified as follows
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
94
25. Receivables from related companies from contracts with customers
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
SIA "HansaMatrix Pārogre" - - 7 930 2 139
SIA "HansaMatrix Ventspils" - - 4 334 21 937
SIA "HansaMatrix Innovation" - - - 73 681
TOTAL: - - 12 264 97 757
The Parent Company evaluates receivables form related companies as a separate receivable portfolio, considering that
historically the unrecovered debts for this portfolio were equal to 0, no ECL is being recognized during year 2021.
26. Other receivables
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Accrued income 129 917 100 121 - -
Overpaid VAT 95 726 197 758 89 863 189 466
Security deposit 55 539 3 247 18 788 2 988
Contribution to the united tax account 1 452 - 1 424 -
Other customers 690 3 322 - 34
TOTAL: 282 324 304 448 110 075 192 488
27. Cash and cash equivalents
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Cash at bank 451 210 830 243 290 136 751 733
TOTAL: 451 210 830 243 290 136 751 733
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
EUR 399 524 317 907 238 606 244 062
USD 51 686 512 336 51 530 507 671
TOTAL: 451 210 830 243 290 136 751 733
Cash and cash equivalents by currency profile:
No estimated credit losses have been recognized for cash and cash equivalents as estimated credit losses considered
to be clearly immaterial taking into account nature of banking relationship and assessment of creditworthiness of
financial institutions .
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
95
28. Share capital
As at 31 December 2021, the share capital of the Parent Company was EUR 1 829 381 (31 December 2020: EUR 1 829 381). The
nominal value of one share is 1 EUR (31 December 2020: EUR 1). All the shares are fully paid.
Since 12 July 2016, shares of the Parent Company have been listed on the Riga Stock Exchange. The
following table summarizes the changes in the number of shares and their nominal value:
Number of shares Nominal value, EUR Share capital, EUR Share premium, EUR
31.12.2021 1 829 381 1 1 829 381 2 435 579
31.12.2020 1 829 381 1 1 829 381 2 435 579
Major shareholders (over 5% of equity interest)
of the Parent Company:
31.12.2021 31.12.2020
Major shareholders (over 5% of equity
interest)
Number of
shares and votes
Equity interest
Number of shares
and votes
Equity interest
Shareholder
SIA MACRO RĪGA 559 282 30.57% 623 198 34.07%
ZGI-4 AIF KS 275 562 15.06% 275 562 15.06%
KS BaltCap Latvia Venture Capital Fund 182 000 9.95% 182 000 9.95%
KS FlyCap Investment Fund I AIF 162 632 8.89% 175 738 9.61%
IPAS CBL Asset Management Managed
funds
120 000 6.56% 120 000 6.56%
Funds managed by Swedbank
Investeerimisfondid AS
99 038 5.41% 259 943 14.30%
Funds managed by Swedbank Ieguldījumu
Pārvaldes Sabiedrība AS
93 369 5.10% 93 369 5.10%
Other 337 498 18.45% 99 571 5.35%
TOTAL: 1 829 381 100% 1 829 381 100.00%
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
96
29. Reserves
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Share capital denomination reserve
313 313 313 313
Share option reserve
50 346 1 660 50 346 1 660
TOTAL: 50 659 1 973 50 659 1 973
30. Non-current asset revaluation reserve
Real estate was revalued in 2007, 2012, 2017 and 2021 by certified valuators. Revaluation is performed on a regular
basis, which is at least every five years. Land and buildings are stated at their revalued amount, which is equal to the
fair value at the revaluation date less any subsequent accumulated depreciation and impairment. The measurement of
the fair value disclosed herein is classified as Level 3 — fair value measurements using significant unobservable
inputs.
As a result, the carrying amount of the real estate was increased as follows: by EUR 1 989 062 in 2007, by EUR 237 251
in 2012, by EUR 793 644 in 2017, and by EUR 214 959 in 2021. The revaluation reserve for the building is transferred to
retained earnings over the useful life of the asset. The revaluation reserve established for the land remains unchanged.
In the 2021 valuation, the average market rental rate for similar real estate objects was applied, the discount rate of
9%, the capitalization rate of 7.5%, the occupancy 80%-98%, the indexation of revenue and costs applied 2% per year.
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Revaluation reserve (building) 1 651 518 1 775 209 1 651 518 1 775 209
Transferred to retained earnings (123 693) (123 691) (123 693) (123 691)
Revaluation of buildings - reserve changes 232 636 - 232 636 -
1 760 461 1 651 518 1 760 461 1 651 518
Revaluation reserve (land) 263 438 263 438 263 438 263 438
Revaluation land - reserve changes (17 677) - (17 677) -
245 761 263 438 245 761 263 438
TOTAL: 2 006 222 1 914 956 2 006 222 1 914 956
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
97
31. Loans from credit institutions
The Group has received the following loans from AS
SEB Banka and the European Investment Bank:
Group Parent company
Initial loan
Interest rate
Maturity 31.12.2021 31.12.2020 31.12.2021 31.12.2020
Amount Maturity EUR EUR EUR EUR
5 200 000 EUR 3m EURIBOR+2,1% 25.12.2022. - 1 660 203 - 1 660 203
2 000 000 EUR 3m EURIBOR+2,1% 30.11.2023. 998 739 1 343 317 998 739 1 343 317
980 000 EUR 3m EURIBOR+2,1% 22.12.2022. - 298 983 - -
5 000 000 EUR 30.11.2023. 4 378 694 4 096 590 4 378 694 4 096 590
Non-current loans from credit
institutions :
5 377 433 7 399 093 5 377 433 7 100 110
Loan agreement closing costs – non-
current position
(7 225) (9 064) (7 225) (9 064)
TOTAL: 5 370 208 7 390 029 5 370 208 7 091 046
Total amount borrowed from the European Investment Bank (Note 22) EUR 5 000 000. Loan measured in the balance
sheet at the amortized cost.
Group Parent company
Initial loan
Interest rate
Maturity 31.12.2021 31.12.2020 31.12.2021 31.12.2020
Amount Maturity EUR EUR EUR EUR
5 200 000 EUR 3m EURIBOR+2,1% 25.12.2022. 1 800 190 1 040 000 1 800 190 1 040 000
2 000 000 EUR 3m EURIBOR+2,1% 30.11.2023. 352 496 400 000 352 496 400 000
980 000 EUR 3m EURIBOR+2,1% 20.12.2022. 298 983 199 322 - -
700 000 EUR 3m EURIBOR+2,1% 22.12.2021. - 196 071 - 196 071
Current loans from credit institutions : 2 451 669 1 835 393 2 152 686 1 636 071
Accrued interest 1 471 1 936 1 471 1 936
Loan agreement closing costs –
current portion
(20 106) (8 258) (20 106) (8 258)
TOTAL: 2 433 034 1 829 071 2 134 051 1 629 749
Non-current
Current
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
98
On 22 December 2017, a loan agreement for EUR 4 900 000 and a credit line agreement for EUR 600 000 maturing
within one year were signed with AS SEB banka. The credit line is reviewed annually and extended for another one-
year period. In 2020, an agreement on increasing the credit line limit was signed; the amount of the credit line is EUR
700 000 and it matures on 22 December 2022.
On 17 March 2019, the Parent Company signed a EUR 2 million loan agreement with AS SEB banka to obtain a partial
funding for the implementation of project No 1.2.1.4/16/A/021 “Development of Experimental Production of 3D
Volumetric Imaging Equipment and its Components” under activity 1.2.1.4 “Support in introduction of new products
into production” of specific objective 1.2.1 “To increase investments of private sector in R&D” of the operational
program “Growth and Employment”. To secure the loan, the Parent Company will pledge the real estate at Akmeņu
iela 72 and Akmeņu iela 74, Ogre, its own movable property and establish a financial pledge on its settlement
accounts with AS SEB banka.
The loan amount is reduced by lending-related charges amortized over the loan term. Interest is calculated and
paid on a monthly basis. Loan principal payments by their maturity dates can be specified as follows:
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Payable:
In less than one year
2 451 669
1 835 393 2 152 686 1 636 071
Between one and five years 5 377 433 7 399 093 5 377 433 7 100 110
In more than five years - - - -
TOTAL: 7 829 102 9 234 486 7 530 119 8 736 181
As at 31 December 2021, the unused credit line amount available to the Group and the Parent Company was EUR 700
000 (31 December 2020: EUR 235 125). As at 31 December 2021 and 2020 all the Group and Parent Company’s
property, plant and equipment and current assets were pledged as security for the loans received. The pledge
agreements are registered in the Commercial Pledge register.
As at 31 December 2021, the Group did not fulfil several financial covenants specified in the financing agreements
with AS SEB banka, which is explained by the impact of the global component deficit on business volumes in the
second half of 2021. After the end of the reporting year, AS SEB banka has confirmed that it will not exercise its right
to withdraw from financing agreements prior to maturity due to the non-fulfilment of the abovementioned financial
covenants as of 31 December 2021.
Loans from credit institutions
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
99
32. Lease
The Group has lease contracts for various items of plant, machinery, vehicles and other equipment used in its
operations. Leases of plant and machinery generally have lease terms between 3 and 15 years, while motor vehicles
and other equipment generally have lease terms between 3 and 5 years. The Group’s obligations under its leases are
secured by the lessor’s title to the leased assets.
Generally, the Group is restricted from assigning and subleasing the leased assets and some contracts require the
Group to maintain certain financial ratios. There are several lease contracts that include extension and termination
options and variable lease payments.
The Group also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment
with low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for
these leases.
Set out below are the carrying amounts of right-of-use assets
recognized and the movements during the period:
Other intangible
assets
Property and
land
Equipment and
machinery
Motor vehicles TOTAL
EUR EUR EUR EUR EUR
As at 31 December 2019 5 082 1 501 304 1 086 811 63 741 2 656 938
Correction 6 716 (27 893) 20 177 1 000 -
Additions - 808 368 14 042 119 745 942 155
Disposals - - - (10 283) (10 283)
Depreciation charge (6 042) (580 255) (173 413) (36 171) (795 881)
As at 31 December 2020 5 756 1 701 524 947 617 138 032 2 792 929
Correction - -
Additions - 1 885 845 - 1 988 1 887 833
Disposals - - (45 536) (45 536)
Depreciation charge (4 797) (773 469) (162 686) (34 276) (975 228)
As at 31 December 2021 959 2 813 900 784 931 60 208 3 659 998
Other
intangible
assets
Property and
land
Equipment and
machinery
Motor vehicles TOTAL
EUR EUR EUR EUR EUR
As at 31 December 2019 - 61 927 144 427 37 519 243 873
Additions - 327 609 - 91 487 419 096
Disposals - - - (10 283) (10 283)
Depreciation charge - (95 671) (19 136) (21 714) (136 521)
As at 31 December 2020 - 293 865 125 291 97 009 516 165
Additions - 426 049 - 1 988 428 037
Disposals - - - (45 536) (45 536)
Depreciation charge - (165 077) (18 177) (22 768) (206 022)
As at 31 December 2021 - 554 837 107 114 30 693 692 644
Group
Parent Company
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
100
Lease (cont’d)
Set out below are the carrying amounts of lease liabilities (included under interest-
bearing loans and borrowings) and the movements during the period:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
As at beginning of the period 2 646 642 2 555 293 462 142 207 186
Additions 1 887 833 942 155 428 037 419 096
Disposals (22 786) - (22 786) -
Interest 153 496 123 053 31 620 24 792
Payments (1 167 381) (973 859) (236 740) (188 932)
As at end of the period 3 497 804 2 646 642 662 273 462 142
Current 1 042 451 960 475 207 567 145 583
Non-current 2 455 353 1 686 167 454 706 316 559
The following are the amounts recognized in profit or loss:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Depreciation expense of right-of-use assets
975 228 795 881 206 022 136 521
Interest expense on lease liabilities
153 469 123 053 31 620 24 792
Lease origination costs
104 2 673 104 2 673
TOTAL:
1 128 828 921 607 237 746 163 986
Group as a lessor
The Group has entered into 1 to 5 year-operating leases on office and manufacturing buildings.
For rental income recognized by the Group during the year refer to Note 8.
AS “HansaMatrix”
Unified registration
number: 40003454390
Consolidated and
Parent Company’s
Annual Report 2021
101
33.Changes in liabilities arising from financing activities
1 January
2021
Cash flows New leases Other
31 December
2021
EUR EUR EUR EUR EUR
Current interest-bearing loans and
borrowings (excluding items listed
below)
1 829 071 (1 687 488) - 2 291 451 2 433 034
Current lease liabilities (Note 32)) 960 475 (1 167 381) 299 879 949 478 1 042 451
Non-current interest-bearing loans
and borrowings (excluding items
listed below)
7 390 029 - - (2 019 821) 5 370 208
Non-current lease liabilities (Note 32) 1 686 167 - 1 587 954 ( 818 768) 2 455 353
Dividends - ( 54 881) - 54 881 -
Total liabilities from financing
activities
11 865 742 (2 909 750) 1 887 833 457 221 11 301 046
Group
1 January
2020
Cash flows New leases Other
31 December
2020
EUR EUR EUR EUR EUR
Current interest-bearing loans and
borrowings (excluding items listed
below)
1 874 479 ( 849 205) - 803 797 1 829 071
Current lease liabilities (Note 32) 826 058 ( 973 859) 220 642 887 634 960 475
Non-current interest-bearing loans
and borrowings (excluding items
listed below)
7 930 600 - - ( 540 571) 7 390 029
Non-current lease liabilities (Note 32) 1 729 235 - 721 513 ( 764 581) 1 686 167
Dividends - - - - -
Total liabilities from financing
activities
12 360 372 (1 823 064) 942 155 386 279 11 865 742
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
102
Changes in liabilities arising from financing activities
1 January
2021
Cash flows New leases Other
31 December
2021
EUR EUR EUR EUR EUR
Current interest-bearing loans and
borrowings (excluding items listed
below)
1 629 749 (1 488 166) - 1 992 468 2 134 051
Current lease liabilities (Note 32) 145 583 ( 236 740) 72 701 226 023 207 567
Non-current interest-bearing loans
and borrowings (excluding items
listed below)
7 091 046 - - (1 720 838) 5 370 208
Non-current lease liabilities (Note 32) 316 559 - 355 336 ( 217 189) 454 706
Dividends - ( 54 881) - 54 881 -
Total liabilities from financing
activities
9 182 937 (1 779 787) 428 037 335 345 8 166 532
1 January
2020
Cash flows New leases Other
31 December
2020
EUR EUR EUR EUR EUR
Current interest-bearing loans and
borrowings (excluding items listed
below)
1 675 157 ( 749 544) - 704 136 1 629 749
Current lease liabilities (Note 32) 90 148 ( 188 932) 116 030 128 337 145 583
Non-current interest-bearing loans
and borrowings (excluding items
listed below)
7 531 956 - - ( 440 910) 7 091 046
Non-current lease liabilities (Note 32) 117 038 - 303 066 ( 103 545) 316 559
Dividends - ( 54 881) - 54 881 -
Total liabilities from financing
activities
9 414 299 ( 993 357) 419 096 342 899 9 182 937
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
103
34. Deferred income
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Balance at the beginning of the period 909 833 1 124 311 752 228 931 682
Grants received 78 695 12 600 78 695 12 600
Released to income (Note 8)) (192 858) (227 078) (157 835) (192 054)
Balance at the end of the period 795 670 909 833 673 088 752 228
Current
192 666
185 758
142 075
135 168
Non-current
603 004
724 075
531 013
617 060
Participation of the Parent Company in EU projects
In 2019, HansaMatrix started investing in the technological equipment and the realization of European Regional
Development Fund (ERDF) funded project “Development of experimental production of 3D volumetric imaging
equipment and its components” under ERDF “Operational Program “Growth and Jobs” 1.2.1 Specific Support Objective
“Increase Private Investment in R&D” measure 1.2.1.4. “Support for Introduction of New Products in Production”. Total
and eligible costs of the aforementioned project amount to EUR 2.9 million, with the planned ERDF funding EUR 1
million, or 35% of the eligible project costs.
In 2019, interim payments were received for the equipment already in operation and purchased under the project. In
2020, the Parent Company began to recognize revenue from the financing received for the equipment purchased and
put into operation in 2019. In 2020, the recognized amount was EUR 125 233, in 2021 EUR 91 013.
35. Advances received under contracts with customers
In 2018, the Group started cooperation with new customers. Manufacturing of new products is material intensive and
requires specific materials for which prepayments must be made. The advances received in the years 2019-2021 will
be settled upon the product sale.
Movement in advances and breakdown according to the set settlement term:
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
At the beginning of the year 788 670 1 192 478 694 030 1 078 124
Recognized in revenue (2 055 653) (1032 821) (1949 679) (978 207)
Received 2 452 318 629 013 2 319 762 594 113
At the end of the year 1 185 335 788 670 1 064 113 694 030
Current
1 185 335 788 670 1 064 113 694 030
Non-current
- - - -
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
104
36. Trade payables
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Trade payables, EUR 4 019 566 2 954 338 2 223 535 1 223 067
Trade payables, USD 1 651 504 532 173 1 644 113 523 880
Trade payables, NOK 46 092 7 470 46 092 7 470
Trade payables, GBP - 2 440 - 2 440
Trade payables, SEK 613 539 613 539
TOTAL: 5 717 775 3 496 960 3 914 353 1 757 396
Trade payables are non-interest bearing and are generally on 30-60 days’ terms.
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Trade payables without factoring 5 385 324 3 121 963 3 581 902 1 382 399
Trade payables with factoring 332 451 374 997 332 451 374 997
TOTAL: 5 717 775 3 496 960 3 914 353 1 757 396
The Group has signed a reverse factoring agreement with SIA SEB Līzings, limit 450 000 EUR. The agreement expires
on 17 January 2023.
Trade payables, which are not factorized, are non-interest bearing and are generally on 30-60 days’ terms.
Trade payables are measured at amortized cost.
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
105
37. Taxes and mandatory state social insurance contributions
The Group and Parent Company’s taxes payable to the State budget as at 31 December 2021
and 2020 may be specified as follows:
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
State social insurance mandatory contributions (310 499) (373 583) (15 565) (30 429)
Personal income tax (77 459) (184 655) (8 511) (16 212)
Value added tax - payable (145 555) (251 832) - -
Value added tax - overpayment 94 726 197 758 89 863 189 466
Natural resources tax (1 357) (1 229) ( 269) ( 106)
Real estate tax - - - -
Unemployment risk duty ( 23) ( 75) ( 6) ( 5)
United tax account 1 452 - 1 424 -
TOTAL: (438 715) (613 616) 66 936 142 714
TOTAL PATABLE: (534 893) (811 374) (24 351) (46 752)
TOTAL RECEIVABLE (Note 26): 96 178 197 758 91 287 189 466
The term for the payment of the amount of taxes to be paid into the State budget in 2020
was extended and the long-term part of the tax payment amount is as follows:
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
State social insurance mandatory contributions (65 137) (120 223) - -
Value added tax - payable (44 733) (102 292) - -
Personal income tax (31 208) (50 902) - -
TOTAL: (141 078) (273 417) - -
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
106
38. Corporate income tax
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Corporate income tax - liabilities ( 799) (2 516) ( 195) ( 824)
Corporate income tax - claims - - - -
TOTAL: ( 799) (2 516) ( 195) ( 824)
TOTAL PAYABLE: ( 799) (2 516) ( 195) ( 824)
39. Other liabilities
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Remuneration for work 170 290 244 688 32 617 31 129
Debts to employees 5 275 404 - -
Phone lease agreements 1 599 5 416 158 3 306
Credit card - 520 - 520
Other liabilities 118 359 - 239
TOTAL: 177 282 251 387 32 775 35 194
40. Accrued liabilities
Group Parent Company
31.12.2021 31.12.2020 31.12.2021 31.12.2020
EUR EUR EUR EUR
Accrued unused vacation 142 908 185 919 37 204 38 204
Other accrued liabilities 225 961 121 342 208 662 72 125
TOTAL: 368 869 307 261 245 866 110 329
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
107
The major shareholder of the Parent Company is SIA MACRO RIGA", which owns 30.57% (in 2020: 34.07%) of the
shares. The following table summarizes the Group's and the Parent Company's transactions with related parties in the
relevant financial year
Goods and services
delivered to/ loans issued
to related parties
Goods and services
received from / loans
received from related
parties
Amounts owed by related
parties (gross)
Amounts owed to related
parties (gross)
Related party
Type of
service
Group
Parent
Company
Group
Parent
Company
Group
Parent
Company
Group
Parent
Company
EUR EUR EUR EUR EUR EUR EUR EUR
1. Associates
SIA "Lightspace
Technologies" (as
"HansaMatrix" share
49.86% from
30.09.2019; 67.70%
from 15.11.2021 )
Loan
31.12.2020
500 127 500 127 - - 4 961 573 4 961 573 - -
31.12.2021
- 37 956 -
42 270
- 28 692 - 37 379
Services,
purchase of
materials,
sales
31.12.2020 3 975 3 975 172 172 - - - -
31.12.2021
847 212 42 270 132 310
37 956
116 356 28 692 - 37 379
TOTAL 31.12.2020 504 102 504 102 172 172 4 961 573 4 961 573 - -
TOTAL 31.12.2021 847 212 80 226 132 310 80 226 116 356 57 384 - 74 758
2. Entities with significant influence
over the Parent Company
SIA Macro Riga
(shareholder)
Loan
31.12.2020
10 290 10 290 -
-
551 883 551 883 - -
31.12.2021
11 318 11 318 -
-
563 201 563 201 - -
Services,
purchase of
materials,
sales
31.12.2020
3 428 3 428 -
-
1 808 1 808 - -
31.12.2021 1 083 254 36 300
36 300
829 - - -
TOTAL
31.12.2020
13 718 13 718 - - 553 691 553 691 - -
TOTAL
31.12.2021
12 401 11 572 36 300 36 300 564 030 563 201 - -
3. Subsidiaries
SIA "HansaMatrix
Ventspils" AS
"HansaMatrix" part
100%
Production
services,
supply of
materials
31.12.2020
- 209 287 - 6 411 646 - 21 937 - 1 277 051
31.12.2021 - 224 696 - 6 479 579 - 4 334 - 1 296 318
SIA "HansaMatrix
Innovation" AS
"HansaMatrix" part
100%
Production
services,
supply of
materials
31.12.2020
- 231 611 - 499 189 - 73 681 - 65 359
31.12.2021
- 324 089 - 1 280 815 - - - 354 162
SIA "HansaMatrix
Pārogre" SIA
"HansaMatrix" share
100%
Production
services,
supply of
materials
31.12.2020
- 679 478 - 6 263 238 - 2 139 - 1 385 877
31.12.2021
- 452 694 - 6 737 413 - 7 930 - 1 701 757
SIA "Zinātnes parks"
(AS "HansaMatrix"
share 74.67% from
30.04.2019.)
Loan,
investment
in capital
31.12.2020
- 242 500 - - - 1 066 200 - -
31.12.2021
- 355 520 - - - 1 421 720* - -
AS "Lightspace
Holding" AS
"HansaMatrix" share
100%
Contribution
to share
capital
31.12.2020 - - - - - - - -
31.12.2021 - 9 396 268 - - - - - -
TOTAL 31.12.2020 - 1 362 876 - 13 174 073 - 1 163 957 - 2 728 287
TOTAL 31.12.2021 - 10 753 267 - 14 497 807 -
1 433 984
- 3 352 237
41. Related party transactions
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
* As of 31 December 2021 fair value of loan amounts to 756 thousand EUR
108
Related party transactions
The maturity of the loan issued by HansaMatrix to SIA MACRO RIGA is
December 31, 2021.
The amounts owed by related parties include a loan issued by the Parent
Company to its major shareholder SIA MACRO RIGA.
Interest charged Amounts owed by related parties
2021 2020 31.12.2021 31.12.2020
EUR EUR EUR EUR EUR EUR
% rate Maturity Current Non-current Current Non-current
1,9 31.12.2021 11 318 10 295 563 201 - 551 883 -
Group Parent Company
31.12.2021 31.12.2021 31.12.2020 31.12.2020 31.12.2021 31.12.2021 31.12.2020 31.12.2020
EUR EUR EUR EUR EUR EUR EUR EUR
Current
Non-
current
Current
Non-
current
Current
Non-
current
Current
Non-
current
SIA "MACRO RIGA"
Loan 551 883 - 541 593 - 551 883 - 541 593 -
Interest charged 11 318 - 10 290 - 11 318 - 10 290 -
Allowance - - - - - - - -
TOTAL: 563 201 - 551 883 - 563 201 - 551 883 -
The recoverability of the loan issued to SIA MACRO RIGA is assessed under the expected credit losses model, using
the following variables: Exposure at Default (EAD), Loss Given Default (LGD) and Probability of Default (PD); the latter
variable value obtained from the available public data by Moody’s investors service for hi-tech industry. As amount of
ECL was immaterial, it is not recognized in these financial statements.
Terms and conditions of transactions with related parties
Outstanding balances at the year-end are unsecured, interest-free (except for the loans
issued).
Transactions with key management personnel
The amounts related to key management personnel and recognized as an expense
during the reporting period are disclosed in Notes 14 and 44.
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
109
42. Off-balance-sheet items
In the ordinary course of business, the Group receives raw materials from customers. Such raw materials are
processed and delivered back to the respective customers. Raw materials are owned by customers and the Group
accepts them only for processing. As at 31 December 2021, the total value of these materials was EUR 25 301 066 (31
December 2020: EUR 29 699 472).
On 22 December 2017, the Parent Company entered into a guarantee line agreement with AS SEB banka for a total
amount of EUR 100 000 to receive guarantees for participation in the EU grant programs administered by Latvian
authorities and to be used as security for prepayments due from customers. In 2018, the Parent Company increased
the limit of the guarantee line agreement with AS SEB banka up to EUR 800 000. The guarantee line expires within one
year and each year it is extended for another year; now it expires on 22 December 2022. The above agreement is
secured by a commercial pledge on the Parent Company’s assets. As at 31 December 2021, two guarantees were
used:
a) guarantee of EUR 100 000 issued to AAS BTA Baltic Insurance Company
b) USD 219 505.71 issued to Bank Hapoalim (Israel).
On 22 December 2017, the Parent Company entered into a guarantee agreement with AS SEB banka for the liabilities
of SIA Zinātnes parks arising from loan agreement No 2017012425 signed with AS SEB banka on 22 December 2017.
The said loan matures on 20 December 2022.
On 22 December 2017, the subsidiaries SIA HansaMatrix Pārogre, SIA HansaMatrix Ventspils and SIA HansaMatrix
Innovation entered into guarantee agreements with AS SEB banka for the liabilities of the Parent Company arising
from the following agreements with AS SEB banka: loan agreement No 2017012423 of 22 December 2017 (maturing
on 25 December 2022), loan agreement No 2019002164 of 03 April 2019 (maturing on 30 November 2023), overdraft
agreement No 2017012422 of 22 December 2017 (maturing on 22 December 2022) and surety agreement No
2017012424 of 22 December 2017 (maturing on 22 December 2022).
On 3 December 2018, SIA HansaMatrix Ventspils, SIA HansaMatrix Pārogre and SIA HansaMatrix Innovation and in
December 2020 also SIA Zinātnes parks entered into guarantee agreement with the European Investment Bank for the
liabilities of the Parent Company arising from EUR 10 million financing agreements No 89375 and No 90409. The loan
is repayable within 5 years after the receipt of each tranche.
43. Commitments and contingencies
The Parent Company has pledged its real estate at Akmeņu iela 72 and Akmeņu 74, Ogre, and movable property
as security for loan granted by AS SEB banka (see note 31 to the Annex).
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
110
44. Share-based payment
Group Parent Company
2021 2020 2021 2020
EUR EUR EUR EUR
Expense arising from equity-settled share-based
payment transactions
48 685 1 661 48 685 1 661
TOTAL: 48 685 1 661 48 685 1 661
The calculation of share options uses price determined by HansaMatrix shareholders and included in option
regulations of EUR 6.53.
The table below shows the change in the number of share options in share option contracts during the
year:
Group Parent Company
2020 2020 2021 2020
Number Number Number Number
Outstanding at 1 January 9 550 2 400 9 550 2 400
Granted during the year 3 600 7 300 3 600 7 300
Forfeited during the year (500) (150) (500) (150)
Outstanding at 31 December 12 650 9 550 12 650 9 550
45. Financial risk management
The Group and Parent Company’s principal financial instruments comprise loans from credit institutions, leases, cash
and short-term deposits. The main purpose of these financial instruments is to ensure financing for the Group and
Parent Company’s operations. The Group and the Parent Company have various other financial instruments such as
trade and other receivables and trade and other payables, which arise directly from its operations. The activities of
the Group and the Parent Company expose them to a variety of financial risks: market risk (including foreign currency
risk and interest rate risk), liquidity risk, credit risk and cash flow risk. The Group’s financial management identifies,
evaluates and hedges financial risks in close co-operation with the Group’s operating units.
Foreign currency risk
The Group’s financial assets and liabilities, which are exposed to foreign currency risk, comprise cash and cash
equivalents, trade receivables and trade payables. In order to control foreign currency risk, trade receivables which
can be potentially exposed to this risk are managed in accordance with the appropriate pricing policy. The Group is
mainly exposed to foreign currency risk of the U.S. dollar (USD). The objective of the Group's financial risk
management is to hedge currency risk of all expected cash flows in foreign currencies (for capital investments or
purchases of materials and raw materials) that may give rise to significant currency risk.
The expense recognized for employee services received during the year is shown in the following table:
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
111
45.Financial risk management
Currency risk as at 31 December 2021 and 31 December 2020 can be specified as
follows:
USD SEK GBP NOK EUR TOTAL
EUR EUR EUR EUR EUR EUR
Trade receivables
2021 78 623 - - -
1 662 349
1 740 972
2020 129 807
- - -
749 735
879 542
Cash
2021 51 686 - - - 399 524 451 210
2020 512 336 - - - 317 907 830 243
Total financial
assets subject to
currency risk, EUR 2021 130 309 - - - 2 061 873 2 192 182
2020 642 143 - - - 1 067 642 1 709 785
Trade payables
2021 2 130 552 613 - 46 092 4 725 853 6 903 110
2020 917 264 539 2 440 7 470 3 357 917 4 285 630
Total financial
liabilities subject to
currency risk, EUR 2021 2 130 552 613 - 46 092 4 725 853 6 903 110
2020 917 264 539 2 440 7 470 3 357 917 4 285 630
Net assets /
(liabilities) subject to
currency risk, EUR 2021 (2 000 243) (613) - (46 092) (2 663 980) (4 710 928)
2020 (275 121) (539) (2 440) (7 470) (2 290 275) (2 575 845)
USD SEK GBP NOK EUR TOTAL
EUR EUR EUR EUR EUR EUR
Trade receivables
2021 70 447 - - - 765 373 835 820
2020 120 094 - - - 271 129 391 223
Cash
2021 51 530 - - - 238 606 290 136
2020 507 671 - - - 244 062 751 733
Total financial liabilities subject to
currency risk, EUR
2021 121 977 - - - 1 003 979 1 125 956
2020 627 765 - - - 515 191 1 142 956
Accounts payable and other payable
2021 2 123 161 613 - 46 092 6 160 837 8 330 703
2020 907 551 539 2 440 7 470 4 261 713 5 179 713
Total financial liabilities subject to
currency risk, EUR
2021 2 123 161 613 - 46 092 6 160 837 8 330 703
2020 907 551 539 2 440 7 470 4 261 713 5 179 713
Net assets / (liabilities) subject to
currency risk, EUR
2021 (2 001 184) (613) - (46 092) (5 156 858) (7 204 747)
2020 (279 786) (539) (2 440) (7 470) (3 746 522) (4 036 757)
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
112
Foreign currency risk
The following table demonstrates the sensitivity of the Group and Parent Company’s profit before tax to a reasonably
possible change in USD and other currencies exchange rates in four different scenarios, with all other variables held
constant.
Financial risk management
Potential net effect Potential net effect
Potential net
effect
Potential net effect
Exchange rate changes
from
increase/decrease
from
increase/decrease
from
increase/decrease
from
increase/decrease
TOTAL
USD exchange rate
in NOK exchange
rate
in SEK exchange
rate
in GBP exchange
rate
EUR EUR EUR EUR EUR
10% 2021 71 541 4 149
56
- 75 746
2020 135 310 679
49
222 136 260
5% 2021 37 474 2 195
29
- 39 698
2020 70 877 356 26 116 71 375
-5% 2021 (41 419) (2 426) ( 32) - (43 877)
2020 (78 337) ( 393) ( 28) ( 128) (78 886)
-10% 2021 (87 439) (5 121) ( 68) - (92 628)
2020 (165 379) ( 830) ( 60) ( 271) (166 540)
Potential net effect Potential net effect Potential net effect Potential net effect
Exchange rate changes
from the USD
exchange rate
from
increase/decrease
from
increase/decrease
from
increase/decrease
TOTAL
Potential net effect in NOK exchange rate in GBP exchange rate in SEK exchange rate
EUR EUR EUR EUR EUR
10% 2021 181 926 4 190 - 56 186 172
2020 25 435 679 222 49 26 385
5% 2021 95 294 2 195 - 29 97 518
2020 13 323 356 116 26 13 821
-5% 2021 (105 325) (2 426) - ( 32) (107 783)
2020 (14 726) ( 393) ( 128) ( 28) (15 275)
-10% 2021 (22 354) (5 121) - ( 68) (27 543)
2020 (31 087) ( 830) ( 271) ( 60) (32 248)
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
113
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in the market interest rates. The Group and the Parent Company are exposed to
cash flow interest rate risk mainly in relation to borrowings with floating interest rates as the finance
costs increase significantly with the interest rate growing.
The Group is exposed to interest rate risk mainly through its current and non-current borrowings. The
average interest rate payable on the Group’s borrowings is disclosed in Note 31.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with
all other variables held constant, of the Group’s profit before tax (through the impact on mainly EURIBOR
floating rate borrowings). There is no impact on the equity, except for the effect on the current year
result.
Interest rate sensitivity for the Group and the Parent Company may be specified as follows.
Sensitivity of the Group and the Parent Company to
changes in interest rates:
Year EURIBOR
Effect on profit before tax
EUR
2021 +0,5%
(22 453)
2020 (29 163)
2021 +1,0% (44 907)
2020 (58 327)
2021 -0,5%
22 453
2020 29 163
Year EURIBOR
Effect on profit before tax
EUR
2021 +0,5%
(18 660)
2020 (23 681)
2021 +1,0%
(37 320)
2020 (47 362)
2021 -0,5%
18 660
2020 23 681
Financial risk management
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
114
Liquidity risk
The Group’s liquidity and cash flow risk management objective is to maintain an adequate amount of cash and cash
equivalents and the availability of non-current and current borrowings through access to sufficient credit amounts to
meet the existing and expected liabilities. The Group manages its liquidity risk by arranging an adequate amount of
committed credit facilities with banks, planning of terms of payment of trade payables, developing and analyzing
future cash flows comprising both the existing and planned loans and interest on such loans.
Liquidity ratios are disclosed at Note 47.
The table below summarizes the maturity profile of the Group’s financial liabilities as at 31 December 2021 based on
contractual undiscounted payments.
Up to 3 months 3 to 12 months 1 to 5 years TOTAL
Loans from credit institutions 2021 257 968 2 193 701 5 377 433 7 829 102
2020 409 831 1 425 562 7 399 093 9 234 486
Interest 2021 17 562 45 631 17 039 80 232
2020 24 934 63 955 69 645 158 534
Lease liabilities 2021 68 121 203 883 243 382 515 386
2020 67 625 444 387 519 116 1 031 128
Interest 2021 2399 5 162 2 871 10 432
2020 3699 9 287 10 507 23 493
Trade and other payables 2021 5 500 881 222 695 - 5 723 576
2020 3 345 367 151 593 - 3 496 960
Taxes 2021 535 692 - 141078 676 770
2020 813 890 - 273417 1 087 307
TOTAL 2021 6 382 623 2 671 072 5 781 803 14 835 498
2020 4 665 346 2 094 784 8 271 778 15 031 908
Up to 3 months 3 to 12 months 1 to 5 years TOTAL
Loans from credit institutions 2021 208 137 1 944 549 5 377 433 7 530 119
2020 360 000 1 276 071 7 100 110 8 736 181
Interest 2021 16 060 42 710 17 039 75 809
2020 22 345 57 874 65 222 145 441
Lease liabilities 2021 8 593 26 017 23 446 58 056
2020 9 229 27 939 59 421 96 589
Interest 2021 263 551 169 983
2020 451 1 100 991 2 542
Trade and other payables 2021 7 164 926 107 465 - 7 272 391
2020 4 485 252 431 - 4 485 683
Taxes 2021 24 546 - - 24 546
2020 47 576 - - 47 576
TOTAL 2021 7 422 525 2 121 292 5 418 087 14 961 904
2020 4 924 853 1 363 415 7 225 744 13 514 012
Financial risk management
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
115
Financial risk management
Group Parent Company
2021 2020* 2021 2020
Corrected
EUR EUR EUR EUR
EBITDA
EUR
3 732 029 3 033 726 1 876 576 1 172 395
EBITDA % 17 13 9 5
* Restated increasing by the amount of depreciation included in the cost of work in progress, costs of fixed asset, see
cash flow statement..
Credit risk
The Group is exposed to credit risk through its trade receivables, issued current loans, as well as cash and cash
equivalents. The Group manages its credit risk by continuously assessing the credit history of customers and
assigning credit terms on an individual basis. In addition, receivable balances are monitored on an ongoing basis to
ensure that the Group’s exposure to bad debts is minimized. The Group uses credit risk insurance for factoring
transactions where credit limits and credit rating are established. The Group’s counterparties in money transactions
are local financial institutions.
The Group’s revenue from its largest customer amount to 30% of its total turnover. Except for that, the Group has no
other customer or customer group the transactions with which would exceed 13% of the Group’s total turnover.
31.12.2021 31.12.2020
EUR EUR
Trade receivables – not insured 1 248 503 718 748
Insured trade receivables (factoring) 1 773 416 1 379 394
TOTAL: 3 021 919 2 098 142
Derecognized due to factoring arrangement (1 280 947) (1 218 600)
1 740 972 879 542
31.12.2020. 31.12.2019.
EUR EUR
Trade receivables – not insured 331 087 147 874
Insured trade receivables (factoring) 1 773 416 1 328 477
TOTAL: 2 104 503 1 476 351
Derecognized due to factoring arrangement (1 280 947) (1 182 885)
823 556 293 466
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
116
Capital management
The Group’s objective is to maximize the return on capital to the companies’ shareholders and by retaining a sound
capital structure to maintain the credibility of creditors, customers and market participants as well as to ensure
sustainable operations. The primary task of the Group’s capital management is to ensure that the Group maintains a
strong credit rating and healthy capital ratios to support its business and increase the shareholder value. The Group
manages its capital structure and makes adjustments to it in light of changes in economic conditions.
The Group and the Parent Company monitor the capital adequacy by calculating
the equity-to-asset ratio:
31.12.2021 31.12.2020
EUR EUR
Equity 6 434 378 8 177 924
Total assets 28 537 128 28 537 569
Equity-to-asset ratio 23% 29%
31.12.2021 31.12.2020
EUR EUR
Equity 6 487 638 7 732 195
Total assets 25 841 151 24 692 657
Equity-to-asset ratio 25% 31%
Geopolitical risk
A small part of the Group's turnover consists of revenue from the sale of products outside the European
Union (approximately 15% of revenue), which geopolitical risk. The global electronics manufacturing
services market is mainly affected by the US-China "trade war", as well as the Russia-Ukraine conflict.
The increased US import tariffs on Chinese electronics products in the US market give a good advantage
to Eastern European electronic system manufacturers. On the other hand, a 'trade war' is slowing down
the economy and reducing investment in infrastructure. The Russia-Ukraine conflict, on the other hand,
can affect and exacerbate the global semiconductor deficit and extend supply times. The situation is not
stable and can change at any time. As a result of the sanctions imposed on Russia, the global economic
environment will change significantly in 2022 and it will be needed to adapt to new environment.
Financial risk management
Group
Parent Company
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
117
The fair value of the financial assets and liabilities represent the amount at which the financial instrument could be
exchanged in a current transaction between independent willing parties, other than in a forced or liquidation sale.
The tables below provide the fair value measurement hierarchy of the Group’s assets and liabilities at
31 December 2021:
Fair value measurement using
Total at
carrying
amount
Total at fair
value
quoted prices in
active markets
(level 1)
significant
observable
inputs (Level 2)
significant
unobservable
inputs (level 3)
EUR EUR EUR EUR EUR
Assets and liabilities measured at fair value
Convertible guarantee securities 1 880 003 1 880 003 - 1 880 003 -
Investments in other companies 61 583 61 583 - - 61 583
Assets and liabilities for which fair value is indicated
Loan to shareholder 563 201 563 201 - - 563 201
Loans from credit institutions 7 803 242 7 803 242 - 7 803 242 -
Fair value measurement using
Total at
carrying
amount
Total at fair
value
quoted prices in
active markets
(Level 1)
significant
observable
inputs (Level 2)
significant
unobservable
inputs (Level 3)
EUR EUR EUR EUR EUR
Assets and liabilities measured at fair value
Convertible loan to SIA Zinātnes parks 756 000 756 000 - -
756 000
Convertible guarantee securities 1 880 003 1 880 003 - 1 880 003 -
Investments in other companies 61 298 61 298 - - 61 298
Assets and liabilities for which fair value is indicated
Loan to shareholder 563 201 563 201 - - 563 201
Loans from credit institutions 7 504 259 7 504 259 - 7 504 259 -
46. Fair value
Group
Parent Company
Hierarchy for determining the fair value of the Parent Company's assets and liabilities as at 31 December 2021:
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
118
The tables below provide the fair value measurement
hierarchy of the Group’s assets and liabilities at
31 December 2020:
Fair value
Fair value is determined using the
Total at
carrying
amount
quoted prices in
active markets
(Level 1)
significant
observable inputs
(Level 2)
significant
unobservable
inputs (Level 3)
EUR EUR EUR EUR EUR
Assets and liabilities measured at fair value
Convertible loan to SIA Lightspace
Technologies
4 961 573 4 961 573 - -
4 961 573
Convertible guarantee securities 1 652 485 1 652 485 - 1 652 485 -
Investments in other companies 42 086 42 086 - - 42 086
Other financial investments 38 564 38 564 - - 38 564
Assets and liabilities for which fair value is disclosed
Loan to shareholder 551 883 551 883 - - 551 883
Loans from credit institutions 9 219 100 9 219 100 - 9 219 100 -
Fair value measurement using
Total at
carrying
amount
Total at fair
value
quoted prices in
active markets
(Level 1)
significant
observable inputs
(Level 2)
significant
unobservable
inputs (Level 3)
EUR EUR EUR EUR EUR
Assets and liabilities measured at fair value
Convertible loan to SIA Zinātnes
parks
1 066 200 1 066 200 - -
1 066 200
Convertible guarantee securities 1 880 003 1 880 003 - 1 880 003 -
Investments in other companies 61 298 61 298 - - 61 298
Assets and liabilities for which fair value is indicated
Loan to shareholder 563 201 563 201 - - 563 201
Loans from credit institutions 7 504 259 7 504 259 - 7 504 259 -
Assets stated at revalued amounts are revalued property, plant and equipment items (Note 30), which are revalued on
non-recurring basis (once every five years) and would be classified under Level 3.
The following methods and assumptions were used to estimate the fair values:
Cash and short-term deposits, trade receivables, trade payables and other current liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the loans and borrowings has been calculated by discounting the expected future cash
flows at prevailing interest rates, which are based on Level 2 measurement. No material difference
between book value and fair value has been recognized.
Group
Parent Company
Hierarchy for determining the fair value of the assets and liabilities of the Parent Company as at 31 December 2020:
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
119
47. Going concern
As at 31 December 2021, the Group’s working capital (current assets) amounted to
EUR 8.533 million, including a cash balance of EUR 451 thousand. The liquidity ratio of
the Group historic values from 2017 to 2021 in the exhibit below indicate the ability of
the Group to effectively manage the current asset volumes.
Year 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021
Liquidity ratio 0.7 1.0 0.8 0.8 0.7
The Group’s management has prepared the budget and cash flow projection for the year 2022 ensuring adequate
resources for financing the Group’s operating activities as well as the expected investment flows. The prepared
budget and cash flow were adjusted to the COVID-19 virus spread emergency situation, using the best knowledge
available to the management of the Company at the time of preparing these financial projections. Future
developments in the business environment may differ from the forecasts of the Group’s management, nevertheless
the key assumptions used in the Group’s cash flow and liquidity projection for the year 2022 are as follows:
The positive market trend of increased demand in the data network and medical device sectors continues in
2022. No significant structural changes occur either in the business environment or the market both in the
EU and Latvia, except for the emergency situation due COVID-19 virus spread estimated effects on the
Group key financial indicators due to decrease in demand from some customers and due to potential
disruptions of the supply chain;
In 2022, the Group continues to serve the existing customers and acquires new customers.
HansaMatrix has introduced internal code of emergency aimed to ensure safeguarding and maintaining
good health of the employees in the Company. New internal regulations and business practices have been
introduced to maintain operations of the Group during COVID-19 emergency situation, allowing to assume
no significant business interruption due to employees contracting the virus.
The Group invests in property, plant and equipment to maintain the equipment to the required standards and
to ensure maintaining the existing production capacity and to ensure increasing the capacity if necessary;
In 2022, the working capital is financed and increased from the Group’s operating cash flow;
In December 2021, HansaMatrix has signed agreements with SEB banka and SEB līzings to extend the
maturity of factoring, overdraft, guarantee and reverse factoring for the next annual period of one year for a
total amount of EUR 4.56 million for working capital financing that also include export financing
transactions.
It is planned that liabilities that arised from postponement of tax payments in 2020 and 2021 to ensure
liquidity due to COVID-19 business impact are to be gradually decreased in 2022.
The Group utilizes the opportunities of the government support as applicable to HansaMatrix group to
improve liquidity situation during the COVID-19 virus spread extraordinary situation.
Principal balances of the existing long term loans with SEB banka are amortized according to the standard
agreed repayment schedules.
In 2018, the Group entered into a EUR 10 million financing agreement with the European Investment Bank. The
objective of the funding is to support the AS HansaMatrix Group’s planned investments in 2018-2021 amounting to
EUR 20 million. The funds granted by the European Investment Bank are mainly intended for co-funding the R&D
activities, IT system development, boosting the production capacity at Ogre and Ventspils manufacturing plants and
investments in production automation, thus facilitating the business growth as well as for increasing working
capital. The Group still has access to EUR 2.5 million from this financing, the use of which can be used as necessary
by providing investments in working capital or fixed assets in the first half of 2022.
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
120
48. Events during the reporting period
On 5 January 2021 HansaMatrix announced the
commencement of operations at the second plant in
Ventspils, in accordance with the development plan of
this production location. The Company has entered into a
10-year lease agreement with Ventspils bīvostas pārvalde
for renting a newly built production building with a total
area of 4600 square meters at the address Ventspils
augsto tehnoloģiju parks No 7, Ventspils. The new plant
will complement the existing production capacity with a
new, integrated production process in the production of
plastic parts and the assembly of final products
containing optical elements and systems. This plant will
double the assembly capacity of the Ventspils plant. As a
result of the transaction, the Group's balance sheet will
increase by EUR 733.6 thousand.
On March 22, 2021 Hansamatrix announced changes in
management, which are planned to be made during the
second quarter of 2021, appointing the Company's
operational manager and member of the board, Jānis
Samsa HansaMatrix, as chairman of the board, having
previously fulfilled all regulatory requirements.
Hansamatrix founder Ilmārs Osmanis will continue to
develop LightSpace Technologies as its founder and
current Chairman of the Board and will remain an
important shareholder of Hansamatrix, as well as it is
expected that Ilmārs Osmanis will join the Board of the
Company after its planned elections at the Company's
annual general meeting on May 26, 2021.
On May 7, 2021 HansaMatrix informed about the
conclusion of a new production contract and receipt of
the first orders for the production and delivery of high-
complexity electronics devices for the production and
delivery of a high-complexity electronics device to a
customer of the transport industrial segment in the
Nordic countries. The projected total revenue of
HansaMatrix from the new contract could reach EUR 1.5
million by the end of 2022.
On May 17, 2021 Jānis Sams, Operational Manager and
Member of the Board, was appointed Chairman of the
Board of HansaMatrix. Along with the changes in the
composition of the board, two new board members have
been appointed - Gatis Grava, manager of HansaMatrix
Ventspils factory, and Vitauts Galvanauskas, Ogre factory
manager. Māris Macijevskis continues his work on the
board and as chief financial officer of the Company.
Ilmārs Osmanis, founder of HansaMatrix, former CEO and
Chairman of the Board, left the position of CEO of
HansaMatrix and Chairman of the Board to join the
Supervisory Board of HansaMatrix.
On May 26, 2021, a new composition of the Supervisory
Board was elected at the regular meeting of HansaMatrix
shareholders, in which, in addition to the previous
members of the Supervisory Board Ingrīda Blūma, Dagnis
Dreimanis, Normunds Igolnieks and Baiba Anda Rubesa,
the founder of HansaMatrix, Ilmārs Osmanis, as well as
the Member of the Supervisory board Anders Lennart
Borg were re-elected.
Baiba Rubesa has been confirmed as the Chairwoman of
the HansaMatrix Supervisory Board, while Ingrīda Blūma
will continue to serve as Deputy Chairman of the
Supervisory Board. Andris Bērziņš, who was an
independent member of the Supervisory Board and
served on the HansaMatrix Supervisory Board since 7
October 2015 and was chairman of the Supervisory Board
since 4 April 2018, has left the HansaMatrix Supervisory
Board. In the new Supervisory Board, the independent
members of the Supervisory Board are Ingrīda Blūma,
Anders Lennart Borg and Baiba Rubesa.
On June 11, 2021 HansaMatrix paid dividends of EUR
54,881.43 (fifty-four thousand eight hundred eighty-one
EUR 43 cents) or EUR 0.03 (three cents) per share.
On July 20, 2021, the President of Latvia Egils Levits met
with representatives of HansaMatrix and Lightspace
Technologies to discuss current events in the
development of smart technologies and Latvia's
contribution to innovation of these technologies in the
world. The President of Latvia looked at the research and
production premises of companies, where augmented
reality glasses are created, which are used in the world's
large automotive and other companies for optimization of
production processes.
On August 6, 2021 HansaMatrix announced the
conclusion of a production contract for the production
and delivery of human machine interface electronics
devices to an industrial segment customer in Germany.
The total amount of HansaMatrix revenue from the new
contract in the 9-month period from the 4th quarter of
2021 to the end of the second quarter of 2022 will reach
EUR 3.3 million.
On August 12, 2021, a contract of USD 1.4 million was
concluded for the production and delivery of high-
complexity electronic components to an international
customer in the industrial market segment, with a
location outside the European Union, with planned
deliveries for a 9-month period from Q2 to Q4 2022. The
conclusion of this agreement is a major step forward and
proves the high quality of HansaMatrix manufacturing
services and the performance that requires
HansaMatrix’s existing aviation quality management
system certification AS9100.
On September 13, 2021, the founder of HansaMatrix
Ilmārs Osmanis resigned from his position as a member
of the HansaMatrix Supervisory Board. I.Osmanis has
worked on the Supervisory Board of HansaMatrix since
May 26, 2021, and until then he has been chairman of the
Management Board for many years. From now on, he will
remain a significant shareholder in HansaMatrix and will
advise the Company's management if necessary.
I.Osmanis will devote his knowledge and energy to the
development of the 3D photonics and optical solutions
company LightSpace Technologies, which includes both
the founder and the Chairman of the Board.
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
121
On October 15, 2021, HansaMatrix announced that it had decided to initiate a strategic alternative evaluation process to
support the Company's future growth and increase shareholder value. The Company has entered into a cooperation
agreement with Superia for financial advice in the process. The Company remains confident in the implementation of its
strategic business plan. At the same time, the review of strategic alternatives may allow the Company to determine an
additional strategic direction of the Company's activities, which increases the value of shareholders, as a result of which
one or more transactions may occur, such as a strategic or financial investor attraction transaction, the sale of part of
the Company's business, the reorganization of the Group of Companies, including divestiture of the Company's shares
of Lightspace Technologies into a new company.
On October 18, 2021 HansaMatrix signed a contract for the production and delivery of electronic components to a new
customer in the Nordic industrial market sector related to the health and wellness sector. The volume of planned
deliveries will reach up to EUR 2 million per year starting from the 1st quarter of 2022.
On October 19, 2021, HansaMatrix associate Lightspace Technologies has attracted EUR 800 thousand convertible
investment loan from Estonian and Danish business angels and existing shareholders. These investments will help
Lightspace Technologies to further develop existing and new products.
On 15 November 2021, HansaMatrix associate Lightspace Technologies increased its share capital by issuing 9,168
new shares. After the increase of the Company's share capital, its share capital is EUR 25 769 and consists of 25 769
shares. The share capital was increased by the largest shareholder, HansaMatrix, by making a financial contribution in
the form of an existing convertible loan of EUR 4,96 million, thus acquiring all the new shares.
On 3 December, 2021, HansaMatrix associate Lightspace Technologies signed a large iG1050 head display
supply agreement with a significant industrial client. The contract volume reaches 2.2 MEUR for deliveries
in 2022. The parties confirm that, in the event of successful cooperation, this will continue with new
volumes of supply in the coming years. The contract additionally provides for the adaptation of the iG1050
product of the head display to the selected application.
On 23 December 2021, HansaMatrix signed agreements with SEB Banka and SEB līzings on the extension of the terms
of factoring, overdraft, guarantee line and reverse factoring for the next one-year period for a total amount of EUR 4.56
million for the working capital, including export transactions. In addition, SEB has approved a new leasing financing limit
of EUR 1 million for HansaMatrix's investments in production facilities in 2022.
On December 30, 2021 HansaMatrix has started the reorganization process after evaluating strategic development
opportunities in order to ensure both the increase in the value of shareholder investment and the achievement of the
objectives of further strategic development. Upon commencing it, the Company established a subsidiary company AS
Lightspace holding, investing all 17,445 or 67.7% of Lightspace Technologies' shares with a value of EUR 8,671
thousand as a contribution in kind and HansaMatrix's claim rights against Lightspace Technologies in the amount of
EUR 690,000. The Supervisory Board of HansaMatrix has approved the commencement of the reorganization process
of HansaMatrix, in which the shares of Lightspace holding owned by the Company will be divested from HansaMatrix,
as a result of the reorganization, by establishing a new acquiring company. The division of HansaMatrix will be carried
out in compliance with the rights of all HansaMatrix shareholders, the Company's and creditors' rights, and will be
carried out in accordance with the possible legal form. HansaMatrix's reorganization decision was planned to be taken
at an extraordinary shareholders' meeting in the first quarter of 2022, however, at the time of preparation of this report,
HansaMatrix has postponed the reorganization process indefinitely for strategic reasons. In the event that work on the
reorganization procedure is renewed, shareholders will be presented with a detailed reorganization decision at least a
month in advance.
Events during the reporting period
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
122
49. Events after the end of the reporting period
On 11 January 2022 HansaMatrix increased its share capital. HansaMatrix has previously informed that in accordance
with the decisions taken by the extraordinary shareholders' meeting on 16 February 2018, the issuance of the
Company's share options and the related increase of the Company's share capital with a condition were approved. On
26 November 2021, when implementing the conversion of share options, the Management Board of the Company
decided to increase the Company's share capital by EUR 5500 (five thousand five hundred euros) by issuing new 5500
(five thousand five hundred) bearer shares with the nominal value of one share of EUR 1 (one euro), which were
registered in the Commercial Register of the Republic of Latvia on 10 January 2022. After the increase in the share
capital, the total share capital of the Company is EUR 1 834 881 (one million eight hundred threety-four thousand eight
hundred eighty-one euro).
On 24 February 2022 HansaMatrix received a production order for the production and delivery of
aquaculture systems to a new client in the Nordic industrial market sector related to the aquaculture
sector. The volume of planned deliveries in three years amounts to EUR 5 million from the second quarter
of 2022. HansaMatrix's Management Board is pleased, because the order received confirms the team's
ability to implement the growth strategy in the face of shortage of electronic components, confirms the
Company's ability to take advantage of the growing trend of placing production orders geographically
closer to the customers with the aim of reducing the current uncertainty in global supply chains by
strengthening HansaMatrix's position in the region.
In order to achieve its strategic business development goals by evaluating strategic development opportunities, as well
as taking into account the difficult investment climate in the region, HansaMatrix associate company SIA Lightspace
Technologies on March 14, 2022 has started the process to become a publicly listed company in North America TSX
Venture Exchange in Toronto. Funding will be raised through contributions from private investors. The Company will
disclose more detailed information about the listing on the stock exchange in accordance with the requirements of
regulatory enactments.
The impact of the COVID-19 pandemic and the Russia-Ukraine conflict on the Company's economic activities is still not
fully known and the situation is still evolving. Depending on the duration of the coronavirus (COVID-19) pandemic and
the duration of the Russia-Ukraine conflict and the negative impact on overall economic activity in 2022, the Group's
results could have been negatively impacted, creating liquidity challenges and possible asset impairments. The exact
impact on the Group's activities in 2022 and beyond cannot be predicted.
In the period since 31 December 2021 the Group has not incurred significant losses due to impairments recognized on
outstanding receivables, write down of inventories and fair value decreases of securities/ commodities.
* THIS DOCUMENT IS SIGNED ELECTRONICALLY WITH A SAFE ELECTRONIC SIGNATURE AND CONTAINS A TIME STAMP
Chairman of the Management Board JĀNIS SAMS ______________* April 29, 2022
Chief Accountant VINETA GRECKA ______________* April 29, 2022
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
123
Other information
1. Explanation of audited financial result differences compared to
operative financial results
01.01.2021- 01.01.2021-
31.12.2021 difference 31.12.2021
operational data audited data
EUR EUR
Revenue from contracts with customers 21 962 274 - 21 962 274
Operating profit 1 169 860 (25 232) 1 144 628
Profit/(loss) for the reporting period (502 420) (1 449 890) (1 952 310)
EBITDA 3 757 261 (25 232) 3 732 029
Operating profit in the audited financial statements of the Group as at 31 December 2021, compared to the
operational financial statements for the corresponding period, is EUR 25.2 thousand or 2.16% less, whereas in the
audited financial statements of the Group EBITDA as at 31 December 2021 is EUR 25.2 thousand or 0.67% less, these
differences are not considered significant and are explained by additional expenses of economic activity, information
on which was received already after the publication of the Group's operational financial statements as at 31 December
2021.
The losses of the reporting period in the audited financial statements of the Group as at 31 December 2021, compared
to the operational financial statements for the corresponding period, are EUR 1.45 million higher, which is explained by
the changes in the fair value of investments in the subsidiary SIA Zinātnes parks, which was determined by the rapid
and significant increase in construction costs in the construction of industrial buildings.
Group
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
124
2. Corrected quarterly profit/loss statements 2021
Taking into account that in the audited statements the Company recognizes in revenue the change in
Work In Progress (WIP) year end balances and taking into account that there have been changes in the
2021 quarterly financial results, the Company includes in this note the corrected quarterly profit/loss
statement summary for 2021.
01.01.2021- 01.04.2021- 01.07.2021- 01.10.2021- 01.01.2021-
31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.12.2021
Restated
EUR EUR EUR EUR EUR
Revenue from contracts with customers 5 828 376 6 041 607 5 254 428 4 837 863 21 962 274
Cost of sales (4 860 398) (5 187 145) (4 532 750) (4 245 718) (18 826 011)
Gross margin 967 978 854 462 721 678 592 145 3 136 263
Distribution costs (144 752) (124 745) (92 937) (455 424) (817 858)
Administrative expense (466 391) (492 965) (469 892) (645 859) (2 075 107)
Other operating income 284 859 334 811 177 776 207 149 1 004 595
Other operating expense (50 242) (51 107) (22 164) 20 248 (103 265)
Operating profit 591 452 520 456 314 461 (281 741) 1 144 628
Loss from investments in associates (185 197) (196 110) (53 856) (402 158) (837 321)
Impairment loss on assets - - - (1 389 709) (1 389 709)
Finance income 2 643 2 917 179 979 (174 118) 11 421
Finance costs (363 756) (653 888) (145 519) 295 554 (867 609)
Profit/(loss) before tax 45 142 (326 625) 295 065 (1 952 172) (1 938 590)
Corporate income tax - - - (13 720) (13 720)
Net profit/(loss) for the reporting period 45 142 (326 625) 295 065 (1 965 892) (1 952 310)
Other comprehensive income that will not be
reclassified to profit or loss in subsequent
periods (net of tax):
- - - 214 959 214 595
Total comprehensive income for the year, net
of tax
45 142 (326 625) 295 065 (1 965 892) (1 737 351)
Profit/(loss) attributable to:
Equity holders of the Parent Company 45 142 (326 625) 295 065 (1 965 892) (1 952 310)
Non-controlling interests - - - - -
45 142 (326 625) 295 065 (1 965 892) (1 952 310)
EBITDA 1 241 140 1 150 546 930 739
409 604
3 732 029
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
125
3. Corrected quarterly profit/loss statements 2020
Taking into account that the annual report of the Group's associate company SIA Lightspace
Technologies for 2020 was approved after the submission of the Group's annual report for 2020, as a
result of which the losses recognized by the Group from participation in SIA Lightspace technologies
increased by EUR 247 thousand. In addition, other operating income was adjusted, reducing it by EUR 48
thousand. These losses and decreases in revenue were recognized in the 2020 annual report. The Group
shall include in this statement a summary of the adjusted quarterly profit/loss account for 2020.
01.01.2020- 01.04.2020- 01.07.2020- 01.10.2020- 01.01.2020-
31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.12.2020
Adjusted Adjusted
EUR EUR EUR EUR EUR
Revenue from contracts with
customers
5 184 137 5 290 316 6 554 139 5 560 390 22 588 982
Cost of sales (4 851 058) (4 906 471) (5 565 824) (4 692 890) (20 016 243)
Gross margin 333 079 383 845 988 315 867 500 2 572 739
Distribution costs (114 816) (117 960) (120 302) (503 529) (856 607)
Administrative expense (442 069) (484 941) (459 801) (351 534) (1 738 345)
Other operating income 95 581 163 565 245 340 226 951 731 437
Other operating expense (44 671) (18 587) (13 150) 22 715 (53 693)
Operating profit (172 896) (74 078) 640 402 262 103 655 531
Loss from investments in
associates
(140 778) (188 924) (164 166) (78 743) (572 611)
Finance income 2 558 2 559 2 587 2 586 10 290
Finance costs (124 029) (122 138) (148 684) (544 945) (939 796)
Profit/(loss) before tax (435 145) (382 581) 330 139 (358 999) (846 586)
Corporate income tax - - - - -
Net profit for the reporting period (435 145) (382 581) 330 139 (358 999) (846 586)
Other comprehensive income that
will not be reclassified to profit or
loss in subsequent periods (net of
tax):
- - - - -
Total comprehensive income for
the year, net of tax
(435 145) (382 581) 330 139 (358 999) (846 586)
Profit attributable to:
Equity holders of the Parent
Company
(434 609) (382 161) 330 473 (358 999) (845 296)
Non-controlling interests (536) (420) (334) - (1 290)
(435 145) (382 581) 330 139 (358 999) (846 586)
EBITDA 441 076 526 667 1 246 271 819 712 3 033 726
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
126
The specification of the KPIs is determined in accordance with Annex I to the Delegated
Regulation 2021/2178. We determine the Taxonomy-eligible KPIs in accordance with the legal
requirements and describe the accounting policy in this regard as follows:
4.1 Turnover KPI
The proportion of Taxonomy-eligible economic activities in total turnover has been calculated as the part of net
turnover derived from products and services associated with Taxonomy-eligible economic activities (numerator)
divided by the net turnover (denominator). The denominator of the turnover KPI is based on the consolidated net
turnover, for further details on the accounting policies regarding the consolidated net turnover, please see the Note
2.18 to Financial statements 2021.
With regard to the numerator, we have not identified any Taxonomy-eligible activities, as explained above.
4.2 Capex KPI
The Capex KPI is defined as Taxonomy-eligible Capex (numerator) divided by the total Capex (denominator).
Total Capex consists of additions to tangible and intangible fixed assets during the financial year, before depreciation,
amortization and any re-measurements, including those resulting from revaluations and impairments, as well as
excluding changes in fair value. It includes additions to fixed assets (IAS 16), intangible assets (IAS 38) and right-of-
use assets (IFRS 16). Additions resulting from business combinations are also included. Goodwill is not included in
Capex, because it is not defined as an intangible asset in accordance with IAS 38. For further details on the accounting
policies regarding Capex, please see the Note 2.4. – 2.7. to Financial statement 2021.
4.3 Operational costs
The Opex KPI is defined as Taxonomy-eligible Opex (numerator) divided by total Opex (denominator). With regard to
the numerator, we refer to the explanations below.
Total Opex consists of direct non-capitalized costs that relate to research and development, building renovation
measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day
servicing of assets of property, plant and equipment. This includes:
Research and development expenditure recognized as an expense during the reporting period in the income
statement (please see the Note 2.6 to Financial statements 2021). In line with the consolidated financial
statements (IAS 38.126), this includes all non-capitalized expenditure that is directly attributable to research
or development activities.
The volume of non-capitalized leases was determined in accordance with IFRS 16 and includes expenses for
short-term leases and low-value leases (please see the Note 2.11 to Financial statements 2021). Even though
low-value leases are not explicitly mentioned in the Delegated Regulation 2021/2178, we have interpreted the
legislation as to include these leases.
Maintenance and repair and other direct expenditures relating to the day-to-day servicing of assets of
property, plant and equipment were determined based on the maintenance and repair costs allocated to the
internal cost centers. The related cost items can be found in various line items in the income statement,
including production costs (maintenance in operations), sales and distribution cost (maintenance logistics)
and administration cost (such as maintenance of IT-systems). This also includes building renovation
measures.
In general, this includes staff costs, costs for services, and material costs for daily servicing as well as for regular and
unplanned maintenance and repair measures.
These costs are directly allocated to property, plant and equipment. This does not include expenditures relating to the
day-to-day operation of property, plant and equipment such as: raw materials, cost of employees operating the
machinery, and electricity or fluids that are necessary to operate property, plant and equipment.
4. Accounting policy related to taxonomy regulation 2020/852
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390
127
5. Definitions of alternative performance measures (APM)
No ASR, definition, components
Relates to past or
future reporting
periods
ASR usefulness The Group uses APM for
1 EBIT: Operating profit Past
Shows the entity’s ability to generate
enough earnings to be profitable, pay
down debt and taxes and fund ongoing
operations.
Liquidity management and
assessment of earning capacity
and cash flows
2 EBIT margin: EBIT/ Revenue Past
Shows the proportion of revenues that
are available to cover non-operating
costs.
Profitability assessment
3
EBITDA: Operating profit + Depreciation and
amortization
Past
Shows an indicative amount of operating
cash flows before changes in current
assets
Liquidity management and
assessment of earning capacity
and cash flows
4 EBITDA margin: EBITA/ Revenue Past
Shows the entity’s ability to generate
operating cash flows
Profitability assessment
5
Normalized earnings: Profit adjusted by the
most significant expense or income that are
not associated with actual cash
expenditures (except depreciation).
Past
Shows the entity’s earning capacity by
enhancing comparability between the
periods, when applicable and necessary.
Liquidity management and
assessment of earning capacity
and cash flows
6 P/E ratio: Share price / Earnings per share Past
Can be used in making conclusions as to
whether the Nasdaq Riga market price of
the Group’s shares is overstated or
understated in comparison to other
similar companies or the average market
price
Determining the relative value per
share
7
Normalized P/E indicator: Share price /
Normalized net profit per 1 share
Past
May be used to draw conclusions or the
market value of the Group's share on
Nasdaq Riga is overvalued or
undervalued compared to other similar
companies, or the market average
For determining the relative value
of shares
8 Net profit margin: Net profit/ revenue Past
Indicates the company's ability to
generate profits
For the assessment of
profitability
9
Normalized net profit margin: Normalized
net profit/ Revenue
Past Shows the entity’s earning capacity
Shows the entity’s earning
capacity
10
Normalized ROA: Normalized net profit/
Total assets
Past
Shows how efficiently the assets are
used to generate earnings.
Shows how efficiently the assets
are used to generate earnings.
11
Normalized ROE: Normalized net profit /
Equity
Past
Shows how efficiently the equity is used
to generate earnings
Shows how efficiently the equity
is used to generate earnings
12
Current ratio: Current assets/ Current
liabilities
Past
Shows the extent to which an entity has
sufficient current assets to cover its
current liabilities
Shows the extent to which an
entity has sufficient current
assets to cover its current
liabilities
13
Normalized return on invested capital
(ROCE): Normalized net profit / (Total
assets-Current liabilities)
Past
Shows how efficiently the capital
employed is used to generate earnings
Shows how efficiently the capital
employed is used to generate
earnings
14
Compound annual growth rate Compound
annual growth rate (CAGR): (Investment’s
ending value/ Investment’s beginning
value)^(1/Number of periods)-1.
CAGR is the rate of return that would be
required for an investment to grow from its
beginning balance to its ending balance,
assuming the profits were reinvested at the
end of each year of the investment’s
lifespan.
Past
Shows a growth rate of a financial
measure over a certain period of time
assuming that the growth rate is the
same over the equal span of time of the
said period.
Shows a growth rate of a financial
measure over a certain period of
time assuming that the growth
rate is the same over the equal
span of time of the said period.
Two ASR-No 6 and 8 have been added to reflect the profitability margins for both net and normalized profit and, where appropriate, to
calculate P/E using both net and normalized profit. The names ASR Nos 5, 7, 9, 10, 11 and 13 have been changed to better reflect the
nature of these indicators.
Consolidated and
Parent Company’s
Annual Report 2021
AS “HansaMatrix”
Unified registration
number: 40003454390