Hms Networks Ab · OMXSTO:HMS
Hms Networks Ab — Q4 2024 Earnings Presentation
26 slides from Hms Networks Ab's earnings presentation, Jan 28, 2025
Slide 1: HMS Networks Q4 2024 presentation
HMS Networks Q4 2024 presentation Staffan Dahlström, CEO, Joakim Nideborn, CFO January 28, 2025 Hardware Meets Software
Slide 2: Agenda
Agenda 1 Business update from Q4 2024 2 New organization 3 Financial summary Q4 2024 4 Q&A
Slide 3: Financial summary of Q4 2024 and full year
Financial summary of Q4 2024 and full year Q4 summary FY 2024 summary • Net sales 807 MSEK (760), +6%, organic -33% • Net sales 3,059 MSEK (3,025), +1%, organic -26% • Order intake 893 MSEK (426), +110%, organic +2% • Order intake 2,812 MSEK (2,303), +22%, organic -19% • Adjusted EBIT 163 MSEK (196)
Slide 4: Business update – fourth quarter 2024
Business update – fourth quarter 2024 • Order intake on a new record level, +110% growth and an organic growth of +2% • Red Lion received large order in North America for N-Tron Ethernet switches • Challenging end markets in German and Japan, but decreased de-stocking • New division organization lau
Slide 5: Business update – FY 2024
Business update – FY 2024 • 2024 has been a challenging year from a market perspective with destocking effects and a weaker demand in almost all geographical areas • The two acquisitions of Red Lion in April and PEAK in November helps HMS to deliver growth for the year • Launch of Anybus Wireless Bo
Slide 6: Increase in won but decline in active design wins
Increase in won but decline in active design wins Design Wins, # *2022 and 2023 recalculated compared to previous reported -1% CAGR+5.3% 1,820 1,790 1,769* 1,820 1,797 1,842* 1,693 165 174 146 152 1,591 199 139 1,508 177 217 1,381 203 1,241 195 1,061 979 180 146 119 1,797 1,820 1,790 1,842 1,693 1,7
Slide 7: Overview PEAK-System Technik GmbH
Overview PEAK-System Technik GmbH German based company with a leading position in CAN communication KEY OFFERING COMPANY HIGHLIGHTS APPLICATIONS § EV/CARS UTILITY VEHICLES Software & Tools sales enabler 1999 ≈ 50 2 to mobility related end customers Founded Employees Development centers • HQ Darmstad
Slide 8: Divisional Bolt-on with Ixxat->Vehicle Communication
Divisional Bolt-on with Ixxat->Vehicle Communication HMS Acquisition rationale • Complementing products & technology to HMS Ixxat brand • Strong Classic Distribution network, cross selling for HMS • Weak E-commerce Distribution, cross selling with HMS • Unique software differentiates HMS offering •
Slide 9: Agenda
Agenda 1 Business update from Q4 2024 2 New organization 3 Financial summary Q4 2024 4 Q&A
Slide 10: Our business – Industrial ICT – in three divisions
Our business – Industrial ICT – in three divisions 44% 34% 22% Industrial Data Solutions Industrial Network Technology New Industries (IDS) (INT) (NI) Solutions to connect, secure, diagnose and Technology for communication, control and Industrial communication for niche applications visualize data i
Slide 11: An organization for future growth
An organization for future growth Customers Create customer-focused organization from sales to R&D INDUSTRIAL INDUSTRIAL NEW DATA NETWORK INDUSTRIES SOLUTIONS TECHNOLOGY Reduce complexity Shared services Full accountability of strategies, resources and financial performance Supply chain Group functi
Slide 12: Agenda
Agenda 1 Business update from Q4 2024 2 New organization 3 Financial summary Q4 2024 4 Q&A
Slide 13: Order intake of 893 MSEK in Q4 2024, +110%
Order intake of 893 MSEK in Q4 2024, +110% Order Intake, MSEK Analysis and conclusions +110% • Q4 2024: 893 MSEK (426), +110% (organic +2%) 1 000 4 000 893 857 815 • 2024: 2,812 MSEK (2,303), +22% (organic -19%) 800 769 718 703 675 682 677 390 3 000 • Order intake recovery in Q4, mainly driven by Re
Slide 14: De-stocking: small impact on order intake in Q4
De-stocking: small impact on order intake in Q4 Normalized order intake excluding Red Lion and PEAK, MSEK 857 815 50 718 703 669 699 250 675 682 35 492 473 150 565 605 50 85 0 426 18 516 503 140 200 50 433 65 100 0 12 633 682 698 642 635 607 615 575 618 625 500 505 529 499 533 541 -30 -42 -9 -100 -5
Slide 15: Net Sales 807 MSEK in Q4 2024, +6%
Net Sales 807 MSEK in Q4 2024, +6% Net Sales, MSEK Analysis and conclusions +6% • Q4 2024: 807 MSEK (760), +6% (organic -33%) 1 000 5 000 773 789 845 792 807 • 2024: 3,059 MSEK (3,025), 1% (organic -26%) 800 764 760 4 000 703 601 624 616 283 244 304 • Book-to-bill excluding FX effects of 1.07 in Q4
Slide 16: Red Lion in Q4 – growth in order intake of 37%
Red Lion in Q4 – growth in order intake of 37% Red Lion Net Sales & Order intake, MSEK Analysis and conclusions • Net Sales increased 1% compared to Q4 2023 to 260 MSEK (258) 500 • Order intake increased 37% to 348 MSEK (253) 400 371 +1% 356 328 • Adjusted EBIT in Q4 2024 of 73 MSEK (33), correspond
Slide 17: Backlog of 703 MSEK, 20% of R12 Net Sales
Backlog of 703 MSEK, 20% of R12 Net Sales Backlog, 2020 – 2024, MSEK 4 000 3 500 3 000 2 500 2 000 1 500 1 408 1 453 1 407 1 316 1 316 1 195 1 106 +97 1 000 864 746 778 713 703 641 605 535 500 393 281 243 238 264 0 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124
Slide 18: Q4 2024: Sales per region
Q4 2024: Sales per region Sales per region Q4 2024, MSEK 41% 44% 15%
Slide 19: Q4 2024: Adjusted EBIT 163 MSEK (20.2%)
Q4 2024: Adjusted EBIT 163 MSEK (20.2%) Adjusted EBIT, MSEK Analysis and conclusions • Adjusted EBIT Q4: 163 MSEK (196) -17% • Adjusted EBIT margin Q4: 20.2% (25.8) 250 800 226 • Adjusted EBIT 2024: 655 MSEK (792) 216 4 4 700 200 197 196 194 • Adjusted EBIT margin 2024 : 21.8% (26.2) 185 6 4 6 23 60
Slide 20: Summary of restructuring programs 2024
Summary of restructuring programs 2024 Impact from reorganization in Q4 Total impact from restructuring in 2024 The restructuring program initiated in the fourth quarter The total effect of the two completed restructuring related to the new division organization has been completed initiatives from Q
Slide 21: Q4 2024: Adjusted EPS 2.60 SEK
Q4 2024: Adjusted EPS 2.60 SEK Adjusted EPS, SEK Analysis and conclusions Q4: • Adjusted EPS of 2.60 SEK (2.94) 4.00 3.79 3.77 14 -12% 13 • Net financials of -36 MSEK (-27) mainly related 3.50 3.37 12 to interest cost of -36 MSEK 3.00 3.02 2.94 11 • The Board proposes no dividend (4.40) for the 10 y
Slide 22: Q4 2024: Cash flow from ops. of 177 MSEK
Q4 2024: Cash flow from ops. of 177 MSEK Cash flow, MSEK Analysis and conclusions Q4: 250 125% • Cash flow from ops. of 177 MSEK (119) +49% • Changes in NWC → 49 MSEK (-28) 205 200 100% • Inventory levels continue to decline and 177 177 167 strengthened NWC of 35 MSEK 155 152 150 75% 2024: 118 119 •
Slide 23: Q4 2024: Net Debt of 3,293 MSEK
Q4 2024: Net Debt of 3,293 MSEK Net debt and leverage, MSEK Analysis and conclusions 3 300 3 293 4.0 • Net debt / Adj. EBITDA including proforma 3 200 from acquisitions: 3.41 (0.33) 276 3 100 3.5 3 000 • Net debt pre IFRS 16 / Adj. EBITDA incl 2 900 197 proforma from acquisitions : 3.37 2 760 3.0 2
Slide 24: Summary of 2024
Summary of 2024 • The Red Lion acquisition have significantly strengthened HMS’ presence in North America and will be a part of the Industrial Two large and long-term value-creating Data Solution (IDS) division from 2025 acquisitions • German PEAK will strengthen the New Industries division by sales
Slide 25: Agenda
Agenda 1 Business update from Q4 2024 2 New organization 3 Financial summary Q4 2024 4 Q&A
Slide 26: Questions?
Questions’? Ss aE, <A SSS