HMS Networks AB · OMXSTO:HMS
HMS Networks AB — Q4 2021 Earnings Presentation
22 slides from HMS Networks AB's earnings presentation, Jan 26, 2022
Slide 1: HMS Networks Q4 2021 presentation
HMS Networks Q4 2021 presentation January 26, 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 Q4 2021 and full year 2021
Financial summary of Q4 2021 and full year 2021 Q4 2021 • Net sales 571 MSEK (405), +41% • Net sales 1,972 MSEK (1,467), +34% • Order intake 699 MSEK (408), +71% • Order intake 2,538 MSEK (1,447), +75% • EBIT 109 MSEK (75) • EBIT 446 MSEK (288) • EBIT margin 19.2% (18.5%) • EBIT margin 22.6% (19.6%)
Slide 4: We are Connecting Devices
a . . “ims \Ne are Connecting Devices™ Anybus*’ Ewonr Intesis' Ixxat’ BY HMS US BY HMS NETWORKS ‘BY HMS NETWORKS ‘BY HMS NETWORKS WEBfactory © PROCENTEC owasys° lember of the HMS group jember of the HMS group. Member of the HMS group
Slide 5: HMS Playing Field — Customer groups
HMS Playing Field — Customer groups Makers of industrial equipment Users of automation systems
Slide 6: HMS Playing Field — Customer groups
HMS Playing Field — Customer groups 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 Direct Sal
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 Staff NPS Staff & +25 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 – fourth quarter 2022
Business update – fourth quarter 2022 • Strong demand across all geographies – drivers from increased automation, digitalization, energy monitoring, remote access and sustainability • All brands have developed well throughout the year • Continental Europe and USA delivering record volumes in Q4 • Co
Slide 10: Significant business events during the year
Significant business events during the year • Acquisition of 60% of the shares in Owasys on July 1st • Cellular IoT platform for Utility Vehicles • Strengthen HMS’ offer within Mobile Machines and Utility Vehicles 5G • Successful 5G deployments in Automotive and Mining applications, moving from “Pro
Slide 11: 174 new Design-Wins in 2021
174 new Design-Wins in 2021 -1.6% CAGR+6.9% 1,820 1,790 1,797 1,693 165 174 1,591 199 1,508 217 177 1,381 203 1,241 195 1,061 979 180 146 119 1,820 1,693 1,797 1,508 1,591 1,381 1,241 979 1,061 909 -49 -64 -55 -76 -134 -75 -95 -142 -204 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Share of Grou
Slide 12: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 13: Q4 2021: Order intake 699 MSEK, +71%
Q4 2021: Order intake 699 MSEK, +71% ORDER INTAKE, MSEK HIGHLIGHTS +71% • Q4 2021: 699 MSEK (408), +71% (organic +65%) 800 3 000 699 2 750 700 669 2 500 • YTD 2021: 2,538 MSEK (1,447), +75% (organic +66%) 606 600 565 2 250 2 000 500 • Adjusting for order intake boost: 401 408 1 750 387 375 372 400 3
Slide 14: Q4 2021: Net Sales 571 MSEK, +41%
Q4 2021: Net Sales 571 MSEK, +41% NET SALES, MSEK HIGHLIGHTS 700 +41% 2 200 • Q4 2021: 571 MSEK (405), +41% (organic +37%) 2 000 600 571 • 2021: 1,972 MSEK (1,467), +34% (organic +26%) 1 800 500 455 474 472 1 600 416 405 1 400 400 380 377 361 346 355 345 1 200 • Delivery capacity temporarily improve
Slide 15: Underlying demand ~500 MSEK per quarter
Underlying demand ~500 MSEK per quarter Order Intake, MSEK Net Sales, MSEK +7% 699 +8% 571 669 0 504 522 605 565 140 200 455 30 50 65 100 0 571 529 455 474 472 500 505 499 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 "Boost" Real demand Reprioritized orders Net Sales The volatility throughout the industry supply chain r
Slide 16: Growing backlog from component constraints
Growing backlog from component constraints ORDER BACKLOG ORDERS FOR DELIVERY > 3 MONTHS 900 864 50% 49% 850 46% 800 45% 746 750 700 40% 39% 37% 36% 650 35% 35% 600 +227% 550 535 30% 28% 500 25% 450 25% 400 393 20% 20% 350 20% 17% 300 281 16% 271 261 264 243 243 238 15% 250 229 200 10% 150 100 5% 50
Slide 17: Q4 2021: Sales per region
Q4 2021: Sales per region Sales per region Q4 2021, MSEK EMEA • Net Sales 349 MSEK (250) • 61% of Group sales (62%) • Germany represents 36% Americas 24% 61% APAC • Net Sales 136 MSEK (82) • Net Sales 86 MSEK (73) • 24% of Group sales (20%) 15% • 15% of Group sales (18%) • USA represents 78% • Japan
Slide 18: Q4 2021: EBIT 109 MSEK (19.2% margin)
Q4 2021: EBIT 109 MSEK (19.2% margin) EBIT, MSEK Comments on Q4 results • EBIT Q4: 109 MSEK (75), 19.2% (18.5%) margin +45% 130 500 121 • EBIT YTD: 446 MSEK (288), 22.6% (19.6%) margin 120 114 450 109 110 101 400 100 • Q4 gross margin of 60.8% (61.6%) 90 350 • Negative effects from price increases o
Slide 19: Q4 2021: EPS 1.85
Q4 2021: EPS 1.85 EPS, SEK Comments on Q4 EPS • EPS of 1.85 SEK (1.21) +53% 2.2 8.0 • Net financials of 5 MSEK (-5) 2.02 7.5 2.0 1.93 1.85 7.0 1.81 1.8 6.5 6.0 1.6 1.46* 5.5 1.4 1.33 5.0 1.24 1.21 1.2 4.5 1.10 1.01 4.0 0.98 1.0 3.5 0.88 Comments on 2021 EPS 0.8 3.0 2.5 • EPS of 7.61 (4.79) 0.6 2.0 0
Slide 20: Q4 2021: Cash flow from operations of 104 MSEK
Q4 2021: Cash flow from operations of 104 MSEK CASH FLOW, MSEK Comments on Q4 Cash Flow • Cash flow from operating activities of 104 MSEK 160 +25% 125% (83) 150 148 • Changes in NWC cash flow of -24 MSEK (5) 140 132 130 126 • NWC in % of sales 6.8% (10.5) 100% 120 115 116 110 104 100 90 75% 90 83
Slide 21: Q4 2021: Net debt of 347 MSEK
Q4 2021: Net debt of 347 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage +75% • Net debt / EBITDA of 0.63 (0.49) 500 1.8 463 416 347 1.7 • Net debt / Equity: 0.30 (0.16) 450 402 70 64 1.6 • Put/call option of Owasys and Procentec from Q3 98 390 400 1.5 2021 increasing Net Debt by
Slide 22: Q&A
ums Q&A