HMS Networks AB · OMXSTO:HMS
HMS Networks AB — Q2 2022 Earnings Presentation
21 slides from HMS Networks AB's earnings presentation, Jul 14, 2022
Slide 1: HMS Networks Q2 2022 presentation
HMS Networks Q2 2022 presentation July 14, 2022 Staffan Dahlström, CEO, Joakim Nideborn, CFO
Slide 2: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 3: Financial summary of Q2 2022 and YTD
Financial summary of Q2 2022 and YTD Q2 YTD • Net sales 601 MSEK (474), +27% • Net sales 1,118 MSEK (929), +20% • Order intake 815 MSEK (606), +35% • Order intake 1,671 MSEK (1,170), +43% • EBIT 143 MSEK (121) • EBIT 282 MSEK (235) (Adj. 255 MSEK) • EBIT margin 23.7% (25.5) • EBIT margin 25.2% (25.3
Slide 4: HMS – Hardware Meets Software™
HMS – Hardware Meets Software™
Slide 5: HMS Playing Field – Customer groups
HMS Playing Field – Customer groups Makers of industrial equipment Users of automation systems
Slide 6: HMS key customer groups and market channels
HMS key customer groups and market channels Device Machine End users & manufacturers builders System integrators 43% of revenue 35% of revenue Revenue 22% of revenue Specified as Project Sales Design Wins standard or Business model Product Sales option in BOM Direct Sales & Traditional E-Commerce Di
Slide 7: HMS vision and targets
HMS vision and targets To become the World’s Greatest Industrial ICT Company Vision and mission 2025 Group objectives +0 Net Positive in CO2 emissions Environment Vision +25 Staff NPS Staff & Customer NPS Customers “HMS enables valuable data and insights allowing our customers to increase productivi
Slide 8: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 9: Business update – second quarter 2022 (1/2)
Business update – second quarter 2022 (1/2) • All markets are growing, business continues to be strong despite the macro situation • Several mega trends supporting growth – increased automation, digitalization, energy monitoring, remote access and sustainability • Continued component shortage → boos
Slide 10: Business update – second quarter 2022 (2/2)
Business update – second quarter 2022 (2/2) • Acquisition of HMS distributor Global M2M in Australia on July 1st • Global M2M had sales of ~20 MSEK in FY2022 with 90% HMS products • New product releases of next generation Remote Access, Cosy+ • Key orders for newly released SNAP Analytics, our AI-ba
Slide 11: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 12: Q2 2022: Order intake 815 MSEK, +35%
Q2 2022: Order intake 815 MSEK, +35% ORDER INTAKE, MSEK HIGHLIGHTS +35% 857 • Q2 2022: 815 MSEK (606), +35% (organic +16%) 900 3 250 815 3 000 800 2 750 • YTD 2022: 1,671 MSEK (1,170), +43% (organic +28%) 699 700 669 2 500 600 565 606 2 250 • Continue boost orders of 150 MSEK in Q2, expected normali
Slide 13: Underlying demand estimated to 615 MSEK in Q2
Underlying demand estimated to 615 MSEK in Q2 Order Intake, MSEK 857 815 50 699 250 669 150 606 565 140 200 65 100 607 615 500 506 529 499 Q121 Q221 Q321 Q421 Q122 Q222 FX revaluation of already existing order book "Boost" Real demand Accumulated boost effect since Q1 2021 ~900 MSEK
Slide 14: Q2 2022: Net Sales 601 MSEK, +27%
Q2 2022: Net Sales 601 MSEK, +27% NET SALES, MSEK HIGHLIGHTS +27% • Q2 2022: 601 MSEK (474), +27% (organic +17%) 700 2 200 601 2 000 600 571 1 800 • Net Sales YTD of 1,118 MSEK (929), +20% (organic +11%) 517 500 474 472 1 600 455 • Record quarter for all major brands 405 1 400 400 377 361 355 346 34
Slide 15: Backlog continues to buildup by ~200 MSEK in Q2
Backlog continues to buildup by ~200 MSEK in Q2 ORDER BACKLOG, MSEK ORDERS FOR DELIVERY > 3 MONTHS 1 500 70% 1 408 61% 61% 61% 59% 59% 60% 57% 1 250 56% 1 194 10% 13% 6% 6% 12% 14% 12% 50% 49% 46% 1 000 +163% 39% 40% 37% 36% 864 35% 746 28% 750 30% 25% 51% 51% 50% 20% 20% 47% 47% 47% 49% 535 20% 16%
Slide 16: Q2 2022: Sales per region
Q2 2022: Sales per region Sales per region Q2 2022, MSEK EMEA • Net Sales 372 MSEK (285) • 62% of Group sales (61%) • Germany represents 37% Americas 19% 62% • Net Sales 117 MSEK (107) • 19% of Group sales (22%) 19% • USA represents 81% APAC • Net Sales 111 MSEK (82) • 19% of Group sales (17%) • Jap
Slide 17: Q2 2022: EBIT 143 MSEK (23.7% margin)
Q2 2022: EBIT 143 MSEK (23.7% margin) EBIT, MSEK Comments on Q2 results +18% • EBIT Q2: 143 MSEK (121), 23.7% (25.5) margin 150 143 500 139 140 450 130 • Q2 gross margin of 62.2% (63.7) 121 27 120 114 400 • Cost increases of components still impacts 109 110 gross margin negatively 101 350 100 • Resu
Slide 18: Q2 2022: EPS 2.33 SEK
Q2 2022: EPS 2.33 SEK EPS, SEK Comments on Q2 EPS • EPS of 2.33 SEK (2.02) +15% 2.5 2.41 8.5 • Net financials of -3 MSEK (-4) 2.33 8.0 • Dividend of 3.00 SEK paid out in April 7.5 2.02 0.57 7.0 2.0 1.93 1.81 1.85 6.5 6.0 5.5 1.5 1.46 * 5.0 1.33 1.24 1.21 4.5 4.0 0.98 1.01 1.0 3.5 Comments on YTD EPS
Slide 19: Q2 2022: Cash flow from operations of 56 MSEK
Q2 2022: Cash flow from operations of 56 MSEK CASH FLOW, MSEK Comments on Q2 Cash Flow • Cash flow from operating activities of 56 MSEK 160 -56% 125% (126) 150 148 • Changes in NWC → -84 MSEK (-5) 140 132 130 126 • Inventory buildup of ~50 MSEK 100% 120 115 116 • AR buildup of ~60 MSEK from a record
Slide 20: Q2 2022: Net Debt of 410 MSEK
Q2 2022: Net Debt of 410 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage • Net debt / EBITDA of 0.69 (0.16) 500 416 1.8 347 • Net debt / Equity: 0.32 (0.06) 299 1.7 450 84 78 410 1.6 400 390 80 1.5 80 1.4 • More normal structure of the debt profile after the 350 111 1.3 acquisitio
Slide 21: Q&A
nilis Q&A