HMS Networks AB · OMXSTO:HMS
HMS Networks AB — Q3 2021 Earnings Presentation
22 slides from HMS Networks AB's earnings presentation, Oct 22, 2021
Slide 1: HMS Networks Q3 2021 presentation
HMS Networks Q3 2021 presentation October 22, 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 Q3 2021 and first nine months
Financial summary of Q3 2021 and first nine months Q3 First nine months • Net sales 472 MSEK (345), +37% • Net sales 1,401 MSEK (1,061), +32% • Order intake 669 MSEK (336), +99% • Order intake 1,839 MSEK (1,039), +77% • EBIT 101 MSEK (77) • EBIT 336 MSEK (213) • EBIT margin 21.5% (22.3%) • EBIT marg
Slide 4: We are Connecting Devices
a . . “ps \Ne are Connecting Devices™ Anybus’ Ewon Intesis” Ixxat’ BY HMS US BY HMS NETWORKS WEBfactory ~ PROCENTEC owasys° Member of the HMS group 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 third quarter 2021 (1/2)
Business update third quarter 2021 (1/2) • Strong demand across the line – drivers from increased automation, digitalization, energy monitoring and remote access • Mainly good development of existing customers behind the growth • Continued stocking effects boosting order intake by ~140 MSEK • More a
Slide 11: Business update third quarter 2021 (2/2)
Business update third quarter 2021 (2/2) • Acquisition of 60% of the shares in Owasys on July 1st • Cellular IoT platform for Utility Vehicles • Strengthen HMS’ offer within Mobile Machines • Positive outlook 2021 – good investment climate to continue, during coming quarters order intake is expected
Slide 12: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 13: Q3 2021: Order intake 669 MSEK, +99%
Q3 2021: Order intake 669 MSEK, +99% ORDER INTAKE, MSEK HIGHLIGHTS +99% 700 669 2 400 • Q3 2021: 669 MSEK (336), +99% (organic +80%) 606 2 200 600 565 2 000 • YTD 2021: 1,839 MSEK (1,039), +77% (organic +66%) 1 800 500 408 1 600 387 387 401 400 375 372 1 400 337 302 336 1 200 • Adjusting for 140 MSE
Slide 14: Q3 2021: Net Sales 472 MSEK, +37%
Q3 2021: Net Sales 472 MSEK, +37% NET SALES, MSEK HIGHLIGHTS +37% 500 474 2 000 • Q3 2021: 472 MSEK (345), +37% (organic +18%) 455 472 450 416 1 800 • YTD 2021: 1,401 MSEK (1,061), +32% (organic +22%) 405 400 363 380 377 1 600 346 361 355 345 350 1 400 300 1 200 250 1 000 • Procentec has reached a n
Slide 15: Underlying demand is growing throughout the year
Underlying demand is growing throughout the year ORDER INTAKE, MSEK NET SALES, MSEK +7% +9% 669 504 522 605 455 30 50 565 140 0 65 100 3 +3% % 455 474 472 500 505 529 Q1 Q2 Q3 Q1 Q2 Q3 Boosted orders Underlying demand Postponed deliveries Net Sales Compounded quarterly growth
Slide 16: Growing backlog from component constraints
Growing backlog from component constraints ORDER BACKLOG ORDERS FOR DELIVERY > 3 MONTHS 746 750 40% 38.6% 700 37.0% 36.3% 650 35.1% 35% 600 550 535 30% 28.2% 500 +214% 25.3% 450 25% 400 393 20.2% 20.2% 20% 350 17.3% 16.4% 300 281 271 261 264 15% 250 243 243 238 229 200 10% 150 100 5% 50 0 0% Q119 Q2
Slide 17: Q3 2021: Sales per region
Q3 2021: Sales per region Sales per region Q3 2021, MSEK EMEA • Net Sales 296 MSEK (208) • 63% of Group sales (60%) • Germany represents 36% Americas 20% 63% APAC • Net Sales 96 MSEK (80) • Net Sales 80 MSEK (57) • 20% of Group sales (23%) 17% • 17% of Group sales (17%) • USA represents 77% • Japan
Slide 18: Q3 2021: EBIT 101 MSEK (21.5% margin)
Q3 2021: EBIT 101 MSEK (21.5% margin) EBIT, MSEK Comments on Q3 results • EBIT Q3: 101 MSEK (77), margin of 21.5% (22.3%) 130 +32% 450 121 • EBIT YTD: 336 MSEK (213), margin of 24% (20%) 120 114 400 110 101 100 350 • Q3 gross margin of 61.4% (61.9%) 90 300 • Negative effects from price increases of
Slide 19: Q3 2021: EPS 1.81
Q3 2021: EPS 1.81 EPS, SEK Comments on Q3 EPS • EPS of 1.81 SEK (1.33) +36% 2.2 7.0 • Net financials of 1 MSEK (-4) 2.02 6.5 2.0 1.93 1.81 6.0 1.8 5.5 1.6 5.0 1.46* 1.4 1.33 4.5 1.24 1.21 4.0 1.2 1.10 1.01 3.5 0.98 1.0 0.90 0.88 3.0 Comments on first nine months EPS 0.8 2.5 0.6 2.0 • EPS of 5.75 (3.
Slide 20: Q3 2021: Cash flow from operations of 148 MSEK
Q3 2021: Cash flow from operations of 148 MSEK CASH FLOW, MSEK Comments on Q3 Cash Flow • Cash flow from operating activities of 148 MSEK +27% 160 150.0% (116) 150 148 • Changes in NWC → cash flow of +20 MSEK (20) 140 132 130 126 • NWC in % of sales 7.4% (10.7) 120 115 116 110 100.0% 100 90 90 83 80
Slide 21: Q3 2021: Net debt of 416 MSEK
Q3 2021: Net debt of 416 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage • Net debt / EBITDA of 0.81 (0.42) 550 1.8 524 • Net debt / Equity: 0.38 (0.14) 1.7 500 96 463 +158% 1.6 • Dividend of 2.00 SEK per share, 93 MSEK in Q2 450 1.5 416 1.4 • Acquisition of Owasys July 1st impact
Slide 22: Q&A
nilis Q&A