Hms Networks Ab · OMXSTO:HMS
Hms Networks Ab — Q4 2020 Earnings Presentation
23 slides from Hms Networks Ab's earnings presentation, Feb 3, 2021
Slide 1: HMS Networks Q4 2020 presentation
HMS Networks Q4 2020 presentation February 3, 2021 Staffan Dahlström, CEO, Joakim Nideborn, CFO
Slide 2: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 3: Financial summary of Q4 2020 and full year 2020
Financial summary of Q4 2020 and full year 2020 Q4 2020 • Net sales 405 MSEK (346), +17% • Net sales 1,467 MSEK (1,519), -3% • Order intake 408 MSEK (337), +21% • Order intake 1,447 MSEK (1,470), -2% • EBIT 75 MSEK (55, adj. 33) • EBIT 288 MSEK (243, adj. 246) • EBIT margin 18.5% (15.9%, adj. 9.5%)
Slide 4: We are Connecting Devices
a “17S Ne are Connecting Devices™ oe Anybu. Ewon Intesis” Ixxat’ BY HMS US BY HMS NETWORKS WEBfactory © PROCENTEC ‘Member of the HMS group Member of the HMS group.
Slide 5: HMS at a glance
u AITTIS “uM +7,000,000 devices connected in automation +300,000 machines connected to cloud systems sah \ ay 700 ‘mployees Ml worldwide HMS at a glance Our field: Industrial ICT (Information and Communication Technlogy) 5G Smart Grid = ALOT Partners in over 50 countries Officesinl6 countries At the
Slide 6: Two customer groups – Users and Makers
Two customer groups – Users and Makers Makers of industrial equipment Usually targeted direct Users of automation systems Usually targeted via partners
Slide 7: HMS strategic focus areas 2020-2025
HMS strategic focus areas 2020-2025 ENVIRONMENT STAFF & CUSTOMERS GROWTH & PROFITABILTY Make HMS a net positive Happy & high performing employees Continue our sustainable and CO2 company by 2025 generate loyal customers profitable growth
Slide 8: HMS targets 2020-2025
HMS targets 2020-2025 TARGETS FOR 2025 TARGETS FOR 2025 TARGETS FOR 2025 • Net positive internal CO2 impact • Employee NPS > 25 • Net Sales > π (3.14) BSEK • Net positive external CO2 impact • Customer NPS > 25 • EBIT-margin of 20% • Dividend 30-50% of EPS (NPS=Net Promoter Score) ENVIRONMENT STAFF
Slide 9: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 10: Business update fourth quarter 2020
Business update fourth quarter 2020 • Wide recovery in the market – organic growth in order intake in all brands and all geographic markets (EMEA, Americas, APAC) • Customers are back on positive outlook • Customers are increasing order size • Note1: Some impact from customers increasing inventory l
Slide 11: 165 new design-wins in 2020
165 new design-wins in 2020 Terminated 1.3% New wins CAGR+7.6% 1,820 Active base 1,797 1,591 1,693 165 199 1,508 217 177 1,381 203 1,241 195 1,061 979 180 830 909 146 814 119 114 116 1,693 1,797 1,508 1,591 1,381 1,241 979 1,061 814 814 830 909 -98 -37 -49 -64 -55 -76 -134 -75 -95 -142 2009 2010 201
Slide 12: Acquisition of Procentec and WEBfactory
Acquisition of Procentec and WEBfactory • On October 1st HMS acquired 70% of the shares • HMS acquired 74.9% of the shares in in Procentec Group, HQ in Rotterdam WEBfactory GmbH in Q2 2019 • Hardware and Software for surveillance and • In October, the final 25.1% of the shares was diagnostics of net
Slide 13: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 14: Q4 2020: Order intake 408 MSEK, +21%
Q4 2020: Order intake 408 MSEK, +21% ORDER INTAKE, MSEK HIGHLIGHTS +21% 450 1 600 • Order intake Q4 2020: 408 MSEK (337), +21% (organic +13%) 401 408 400 387 387 375 350 360 372 1 400 • Order intake 2020: 1,447 MSEK (1,470), -2% (organic -4%) 350 336 337 336 302 1 200 300 • Q4 highlights (organic or
Slide 15: Q4 2020: Net Sales 405 MSEK, +17%
Q4 2020: Net Sales 405 MSEK, +17% NET SALES, MSEK HIGHLIGHTS +17% 450 1 600 • Net Sales of 405 MSEK (346), +17% (organic +8%) 416 405 400 380 377 353 363 346 361 355 345 1 400 • Net Sales of 1,467 MSEK (1,519), -3% (organic -5%) 350 320 329 1 200 300 • Q4 highlights (sales growth) 1 000 250 800 • EM
Slide 16: Sales per region Q4 2020
Sales per region Q4 2020 Sales per region Q4 2020, MSEK EMEA • Net Sales 250 MSEK (218) • 62% of Group sales (63%) • Germany represents 35% Americas 20% 62% APAC • Net Sales 82 MSEK (76) • Net Sales 73 MSEK (52) • 20% of Group sales (22%) 18% • 18% of Group sales (15%) • USA represents 78% • Japan r
Slide 17: Q4 2020: EBIT 75 MSEK (18.5% margin)
Q4 2020: EBIT 75 MSEK (18.5% margin) EBIT, MSEK Comments on Q4 results +36% • EBIT 75 MSEK (55, adj. 33), EBIT margin of 18.5% 80 300 (15.9%, adj. 9.5%) 77 74 75 72 • Q4 gross margin of 61.6% (61.2) 70 69 67 63 63 250 • OPEX amounted to 175 MSEK (176) corresponding 60 to an organic decrease of 22 MS
Slide 18: OPEX bridge – savings from pandemic
OPEX bridge – savings from pandemic OPEX Q4, MSEK OPEX 2020, MSEK 3 14 22 704 29 35 22 17 13 35 176 1 175 633 2 5 4 Non-recurring saving Non-recurring saving OPEX Acquisitions Short- Other corona Other FX OPEX OPEX Acquisitions Write- No restr. Restr. Short- Other Other FX OPEX Q4 2019 time work rel
Slide 19: EPS of 1.21 SEK in Q4 and 4.79 SEK in 2020
EPS of 1.21 SEK in Q4 and 4.79 SEK in 2020 EPS, SEK Comments on Q4 EPS -17% • EPS of 1.21 SEK (1.46, adj. 0.68) 1.5 1.46 * 5.5 • Net financials of -5 MSEK (-8) 1.4 1.33 5.0 • Non-recurring items in Q4 2019: 1.3 1.24 1.2 1.21 4.5 • Adjustments in EBIT by 22 MSEK 1.09 1.10 1.1 4.0 • Positive tax costs
Slide 20: 2020 Q4: Cash flow from operations of 83 MSEK
2020 Q4: Cash flow from operations of 83 MSEK CASH FLOW, MSEK Comments on Q4 Cash Flow +37% • Cash flow from operating activities of 83 MSEK 120 115 116 400 (61) 110 • Changes in NWC → cash flow of +5 MSEK (+28) 350 100 • NWC in % of sales 10.5% (9.5) 90 90 300 83 80 73 250 70 61 60 55 200 51 52 51
Slide 21: Net debt 198 MSEK
Net debt 198 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage • Net debt / EBITDA of 0.49 (1.20) 550 1.8 524 • Net debt / Equity: 0.16 (0.40) 1.7 500 96 463 1.6 • Net debt reduced 200+ MSEK during 2020 450 1.5 -51% • Good shape to execute updated strategy with 409 1.4 98 402 400 38
Slide 22: Summary of 2020
Summary of 2020 Conclusions 2020 • A year like no other – quick turn around to digital interaction and careful approach to OPEX • Order intake – two challenging quarters (2 and 3) especially in Europe and two positives (1 and 4) • Increased footprint in China, believe in continued growth • Gross mar
Slide 23: Q&A
nilis Q&A