Slide 1: HMS Networks Q2 2023 presentation
HMS Networks Q2 2023 presentation Staffan Dahlström, CEO, Joakim Nideborn, CFO July 14, 2023 Hardware Meets Software™
Slide 2: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 3: Financial summary of Q2 2023 and YTD
Financial summary of Q2 2023 and YTD Q2 YTD • Net sales 703 MSEK (601), +17% • Net sales 1,476 MSEK (1,118), +32% • Order intake 703 MSEK (815), -14% • Order intake 1,384 MSEK (1,671), -17% • EBIT 150 MSEK (143) • EBIT 362 MSEK (282) (Adj. 255 MSEK) • EBIT margin 21.4% (23.7) • EBIT margin 24.5% (25
Slide 4: HMS at a glance
HMS at a glance w on Our field: AS o +9,000,000 industrial ict [5 2 fi devices connected +400,000 (Information and Smart Grid > Mesa] afieatin machines connected hati : Communication ca to cloud systems Teatanlleays Al | O | Halmstad, Sweden ? “i ‘. Offices in 2022 sales ears ACerS a BS 2,506 MSEK w
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 – second quarter 2023
Business update – second quarter 2023 • Continued stable demand despite macro indications of slower industrial markets • Solid development in Continental Europe, Japan shows combination of long orders and destocking, customers in North America destocking but solid delivery volumes • Strong developme
Slide 11: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 12: Order intake of 703 MSEK in Q2 2023, -14%
Order intake of 703 MSEK in Q2 2023, -14% ORDER INTAKE, MSEK HIGHLIGHTS -14% • Q2 2023: 703 MSEK (815), -14% (organic -17%) 900 857 3 250 815 3 000 800 718 2 750 • YTD 2023: 1,384 MSEK (1,671), -17% (organic -18%) 700 669 699 675 682 703 2 500 600 565 606 2 250 • Continued strong market in Building
Slide 13: Underlying demand holding up well
Underlying demand holding up well Order Intake, MSEK 857 815 50 718 703 669 699 250 675 682 35 150 85 605 50 565 140 200 50 65 100 682 698 607 615 575 633 500 505 529 499 -30 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 FX revaluation of already existing order book Destocking Boost orders Under
Slide 14: Order intake bridge Q2 2022 to Q2 2023
Order intake bridge Q2 2022 to Q2 2023 Order Intake bridge, MSEK -14% 815 +10% 150 733 14 30 703 19 665 35 Order Boost Q2 22 Normalized Revaluation FX (vs Q222) Growth Normalized Destocking Reported Order intake Q222 OI Q222 orderbacklog OI Q223 in Q223 intake Q223 Reported order intake: 14% decline
Slide 15: Net Sales 703 MSEK in Q2 2023, +17%
Net Sales 703 MSEK in Q2 2023, +17% NET SALES, MSEK HIGHLIGHTS +17% • Q2 2023: 703 MSEK (601), +17% (organic +10%) 800 764 773 3 000 703 2 750 • YTD 2023: 1,476 MSEK (1,118), +32% (organic +24%) 700 601 624 2 500 600 571 2 250 • 40 MSEK postponed deliveries from go-live of ERP-system, to be 517 455
Slide 16: Order backlog remains at 1.3 BSEK
Order backlog remains at 1.3 BSEK Order backlog, BSEK Order backlog/R12 Net sales 3,0 0,7 0,65 0,63 0,59 0,6 0,56 2,5 0,5 0,48 0,46 2,0 0,44 0,41 0,4 1,5 1,41 1,45 1,41 0,32 1,32 1,32 1,20 0,3 0,25 1,0 0,86 0,19 0,75 0,2 0,17 0,17 0,17 0,18 0,15 0,54 0,5 0,39 0,1 0,23 0,26 0,28 0,24 0,24 0,26 0,0 0,
Slide 17: Q2 2023: Sales per region
Q2 2023: Sales per region Sales per region Q2 2023, MSEK EMEA • Net Sales 414 MSEK (372) • 59% of Group sales (62%) • Germany represents 36% Americas 24% 59% • Net Sales 169 MSEK (117) • 24% of Group sales (19%) 17% • USA represents 63% APAC • Net Sales 120 MSEK (111) • 17% of Group sales (19%) • Ja
Slide 18: Q2 2023: EBIT 150 MSEK (21.4% margin)
Q2 2023: EBIT 150 MSEK (21.4% margin) EBIT, MSEK Comments on Q2 results • EBIT Q2: 150 MSEK (143) +5% 220 750 210 211 • EBIT margin Q2: 21.4% (23.7) 700 200 192 190 650 • EBIT YTD: 362 MSEK (282) (Adj. 255) 179 180 600 170 • EBIT margin YTD: 24.5% (25.2) (Adj. 22.8) margin 160 550 150 150 139 143 50
Slide 19: Q2 2023: EPS 2.48 SEK
Q2 2023: EPS 2.48 SEK EPS, SEK Comments on Q2 EPS • EPS of 2.48 SEK (2.33) +6% 3.8 3.70 13 • Net financials of -7 MSEK (-3) 3.6 12 • Dividend of 4.00 SEK paid out in May 3.4 3.25 3.2 11 3.0 2.90 10 2.8 2.6 2.48 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 YTD EPS
Slide 20: Q2 2023: Cash flow from ops. of 78 MSEK
Q2 2023: Cash flow from ops. of 78 MSEK CASH FLOW, MSEK Comments on Q2 Cash Flow +39% • Cash flow from operating activities of 78 MSEK (56) 180 177 125% • Changes in NWC → -56 MSEK (-84) 170 160 155 • Inventory buildup of 100 MSEK out of which 30 150 148 MSEK is related to FX and lower sales in Q2 1
Slide 21: Q2 2023: Net Debt of 540 MSEK
Q2 2023: Net Debt of 540 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage 550 540 1.8 • Net debt / EBITDA of 0.63 (0.69) 500 1.7 • Net debt / Equity: 0.32 (0.32) 416 347 299 1.6 450 • Total net debt 540 MSEK, out of which interest-bearing 84 78 410 415 1.5 390 383 400 80 295 1.4 ne
Slide 22: Summary Q2 2023
Summary Q2 2023 Demand holds up well despite some destocking • Order intake holds up well, underlying organic order intake up 2% vs Q2 2022 • Starting to see customers destocking, expected to continue throughout H2 Temporary somewhat lower sales and cash flow • Some postponed deliveries from ERP go-
Slide 23: Questions?
Questions’? Ss aE, <A SSS