Hms Networks Ab · OMXSTO:HMS
Hms Networks Ab — Q1 2023 Earnings Presentation
22 slides from Hms Networks Ab's earnings presentation, Apr 17, 2023
Slide 1: HMS Networks Q1 2023 presentation
HMS Networks Q1 2023 presentation Staffan Dahlström, CEO, Joakim Nideborn, CFO April 18, 2023 Hardware Meets Software™
Slide 2: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 3: Financial summary of Q1 2023 and R12
Financial summary of Q1 2023 and R12 Q1 R12 • Net sales 773 MSEK (517), +49% • Net sales 2,762 MSEK (2,034), +36% • Order intake 682 MSEK (857), -20% • Order intake 2,889 MSEK (2,830), +2% • EBIT 211 MSEK (139) (Adj. 112) • EBIT 725 MSEK (471) (Adj. 444 MSEK) • EBIT margin 27.4% (26.9) (Adj. 21.7) •
Slide 4: HMS at a glance
HMS ata glance Qa a Our field: Ag ' y soma industrialict EG & iP REET formation nd Smart6rid = ead ofticein lh to cloud systems Technlogy) Al loT Halmstad, Sweden ip “i Fy Offices in 2022 sales aoe SSA ob 2,506 MSEK worldwide q Ad Partners in over 50 (225 MEUR, 245 M USD) +0 ele Net positive in Staf
Slide 5: Valuable data and insights from machines and systems
Valuable data and insights from machines and systems HMS makes products which enable machines to communicate
Slide 6: HMS playing field – overall market segments
HMS playing field – overall market segments Industrial Automation Building Automation Manufacturing Transportation & Infrastructure Power & Energy Air, roads, railways, ports, Commercial buildings, industrial Factory automation, marine, utilities, data centers, Power generation, power buildings, hot
Slide 7: HMS playing field – Customer groups
HMS playing field – Customer groups Makers of industrial equipment Users of automation systems
Slide 8: HMS key customer groups and market channels
HMS key customer groups and market channels Device Machine End users & manufacturers builders System integrators 44% of revenue 27% of revenue Revenue 29% of revenue Specified as standard Project Sales Design Wins or Business model Product Sales option in BOM Direct Sales & Traditional E-Commerce Di
Slide 9: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 10: Business update – first quarter 2023
Business update – first quarter 2023 • Starting off the year with a record quarter in sales – delivery capacity improved • Solid start of the quarter in order intake, clear de-stocking from customers in Europe and Asia towards the end of the quarter • Improved delivery situation for critical compone
Slide 11: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 12: Order intake of 682 MSEK in Q1 2023, -20%
Order intake of 682 MSEK in Q1 2023, -20% ORDER INTAKE, MSEK HIGHLIGHTS -20% 857 • Q1 2023: 682 MSEK (857), -20% (organic -20%) 900 3 250 815 3 000 800 718 2 750 • R12 2023: 2,889 MSEK (2,830), +2% (organic -6%) 699 675 682 700 669 2 500 606 2 250 • Strong start of the quarter, de-stocking from seve
Slide 13: No boost effect in Q1 – solid underlying demand
No boost effect in Q1 – solid underlying demand Order Intake, MSEK 857 815 50 718 699 250 675 682 669 150 605 50 85 565 140 200 50 65 100 633 682 607 615 575 500 505 529 499 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 FX revaluation of already existing order book "Boost" Real demand Accumulated boo
Slide 14: Net Sales 773 MSEK in Q1 2023, +49%
Net Sales 773 MSEK in Q1 2023, +49% NET SALES, MSEK HIGHLIGHTS +49% • Q1 2023: 773 MSEK (517), +49% (organic 40%) 800 764 773 3 000 2 750 • R12 2023: 2,762 MSEK (2,034), +36% (organic +26%) 700 601 624 2 500 600 571 2 250 • Capacity and component availability becoming better allowing HMS to 517 500
Slide 15: Decline of order backlog by 91 MSEK from last quarter
Decline of order backlog by 91 MSEK from last quarter ORDER BACKLOG, MSEK ORDERS FOR DELIVERY > 3 MONTHS -6% 70% 1 453 1 500 1 408 1 407 61% 60% 59% 59% 1 316 60% 56% 1 250 1 194 11% 12% 49% 6% 12% 13% 50% 1 000 864 40% 36% 746 750 28% 30% 535 50% 50% 20% 47% 46% 48% 500 393 20% 261 281 243 238 264
Slide 16: Q1 2023: Sales per region
Q1 2023: Sales per region Sales per region Q1 2023, MSEK EMEA • Net Sales 463 MSEK (320) • 60% of Group sales (62%) • Germany represents 35% Americas 21% 60% • Net Sales 165 MSEK (100) • 21% of Group sales (19%) 19% • USA represents 71% APAC • Net Sales 145 MSEK (97) • 19% of Group sales (19%) • Jap
Slide 17: Q1 2023: EBIT 211 MSEK (27.4% margin)
Q1 2023: EBIT 211 MSEK (27.4% margin) EBIT, MSEK Comments on Q1 results +52% • EBIT Q1: 211 MSEK (139) (Adj. 112) 220 211 750 210 • EBIT margin Q1: 27.4% (26.9) (Adj. 21.7) margin 700 200 192 190 650 • EBIT R12: 725 MSEK (471) (Adj. 444) 179 180 600 170 • EBIT margin R12: 26.2% (23.1) (Adj. 21.8) ma
Slide 18: Q1 2023: EPS 3.70 SEK
Q1 2023: EPS 3.70 SEK EPS, SEK Comments on Q1 EPS +54% • EPS of 3.70 SEK (2.41) (Adj. 1.84) 3.8 3.70 13 • Net financials of 2 MSEK (-4) 3.6 12 3.4 3.25 3.2 11 3.0 2.90 10 2.8 2.6 9 2.41 2.4 2.33 8 2.2 2.02 0.57 2.0 1.93 7 1.81 1.85 1.8 6 1.6 1.46 * Comments on R12 EPS 1.4 1.33 5 1.24 1.21 1.2 4 1.01
Slide 19: Q1 2023: Cash flow from ops. of 155 MSEK
Q1 2023: Cash flow from ops. of 155 MSEK CASH FLOW, MSEK Comments on Q1 Cash Flow +94% • Cash flow from operating activities of 155 MSEK (80) 180 177 125% • Changes in NWC -70 MSEK (-50) 170 160 155 • Inventory buildup of 27 MSEK 150 148 140 100% • High Accounts Receivable from strong March in 132
Slide 20: Q1 2023: Net Debt of 383 MSEK
Q1 2023: Net Debt of 383 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage 500 1.8 • Net debt / EBITDA of 0.46 (0.52) 416 347 299 1.7 • Net debt / Equity: 0.22 (0.23) 450 84 78 410 415 1.6 383 390 80 400 1.5 • Several new office agreements increasing leasing debt 80 350 1.4 111 163
Slide 21: Summary Q1 2023
Summary Q1 2023 Signs of de-stocking but end markets rather positive • Order intake slowed down towards end of the quarter with several customers de-stocking due to high inventory levels • Still majority of customers are positive to market demand Another record quarter • Record quarter in both sales
Slide 22: Questions?
Questions?