HMS Networks AB · OMXSTO:HMS
HMS Networks AB — Q3 2018 Earnings Presentation
17 slides from HMS Networks AB's earnings presentation, Oct 24, 2018
Slide 1: HMS Networks – third quarter report 2018
HMS Networks – third quarter report 2018 October 24th, 2018 Staffan Dahlström, CEO, Joakim Nideborn, CFO
Slide 2: Agenda
Agenda Summary Business update Financial results Q&A
Slide 3: Summary Q3 2018 – record sales and profit
Summary Q3 2018 – record sales and profit Q2
Slide 4: HMS Financial targets – 20/20/50
HMS Financial targets – 20/20/50 HMS Sales developement 2009-2017 HMS Financial targets 1 183 Sales growth 20% per year 952 +22% 702 589 EBIT 20% per year 501 384 382 345 245 Dividend 50% of EPS 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 5: Agenda
Agenda Summary Business update Financial results Q&A
Slide 6: Business update third quarter 2018
Business update third quarter 2018 • Continued strong economy in Americas, pace has picked up after a slow Q1 • Still good performance YTD in Asia, after a strong start of the year, Q2 and Q3 has been a bit slower in sales. Strong order intake in Q3 • Stable development in EMEA, our largest market,
Slide 7: Events in Q3: Acquisition of Beck IPC GmbH
Events in Q3: Acquisition of Beck IPC GmbH • On July 17th HMS acquired German Beck IPC GmbH • Beck IPC is leading provider in the embedded communications market with solutions for embedded control, M2M communication and the Industrial Internet of Things (IIoT) • Purchase price of 5 MEUR, debt and ca
Slide 8: Agenda
Agenda Summary Business update Financial results Q&A
Slide 9: Order intake of 360 MSEK
Order intake of 360 MSEK Order intake, MSEK Comments on order intake 360 350 328 336 • Group order intake +24% 299 (Beck: 23 MSEK) 289 288 267 • Organic growth +16% (in 252 local currencies 8%) • Large increase in Asia – two large frame orders to be delivered in 2019 Q316 Q416 Q117 Q217 Q317 Q417 Q1
Slide 10: Sales reached all time high of 353 MSEK
Sales reached all time high of 353 MSEK Sales, MSEK Comments on sales 353 • Sales growth of 16%, Beck 329 320 included by 10 MSEK 299 305 301 265 279 • 4% organic growth in local 254 currencies • EMEA +19% in Q3 – general stable market development • Americas +17% in Q3 – investments are starting to
Slide 11: EBIT margin of 21% in the third quarter
EBIT margin of 21% in the third quarter EBIT per quarter, MSEK Comments on EBIT 74 • EBIT of 74 MSEK, 21% 65 63 63 margin 59 57 55 • +11 MSEK in positive currency effects 40 • Gross margin of 60.3% 31 • Increased OPEX of 18 MSEK in relation to Q3 2017, +50 FTE (+20 FTE from Beck) Q316 Q416 Q117 Q217
Slide 12: EPS of 1.09 SEK
EPS of 1.09 SEK EPS per quarter, SEK Comments on EPS 1.09 • EPS of 1.09 SEK (0.90) 0.90 0.90 0.86 0.86 • Net financials of -4 MSEK 0.79 0.80 (-6) 0.55 0.43 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Slide 13: Cash flow from operating activities, 73 MSEK
Cash flow from operating activities, 73 MSEK Cash flow from operations per quarter, MSEK Comments on cash flow 73 69 • Cash flow from operating 62 activities before changes 57 in NWC 59 MSEK 53 51 • Decrease of NWC by 15 MSEK 36 36 20 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318
Slide 14: Net debt/EBITDA is stable at 1.36
Net debt/EBITDA is stable at 1.36 Comments on net debt Net debt and leverage and leverage 500 2.4 450 • Net debt/EBITDA of 1.36 450 2.2 421 400 381 381 2.0 • No increase in Net 379 365 1.8 debt/EBITDA, despite 350 335 319 1.6 acquisitions of Beck 304 300 1.4 • Repurchase of own 250 1.2 shares of 11
Slide 15: Working capital of 9.3% of R12-sales
Working capital of 9.3% of R12-sales Working capital per quarter, MSEK Comments on working capital 123 122 113 • NWC expected to be around 10% of sales 87 • NWC from Beck 10 MSEK 74 68 • Inventory increase of 12 64 59 MSEK (Beck 6 MSEK) offset by increased current liabilities 39 Q316 Q416 Q117 Q217
Slide 16: Agenda
Agenda Summary Business update Financial results Q&A
Slide 17: Q&A
Q&A ?