HMS Networks AB · OMXSTO:HMS
HMS Networks AB — Q1 2022 Earnings Presentation
20 slides from HMS Networks AB's earnings presentation, Apr 14, 2022
Slide 1: HMS Networks Q1 2022 presentation
HMS Networks Q1 2022 presentation April 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 Q1 2022 and R12
Financial summary of Q1 2022 and R12 Q1 R12 • Net sales 517 MSEK (455), +14% • Net sales 2,034 MSEK (1,560), +30% • Order intake 857 MSEK (565), +52% • Order intake 2,830 MSEK (1,611), +76% • EBIT 139 MSEK (114) (Adj. 112 MSEK) • EBIT 471 MSEK (335) (Adj. 444 MSEK) • EBIT margin 26.9% (25.0) (Adj. 2
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 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 – first quarter 2022
Business update – first quarter 2022 • Strong demand across all geographies – drivers from increased automation, digitalization, energy monitoring, remote access and sustainability • All main markets showing 35%+ order intake growth – combination of strong underlying demand and boost orders • Contin
Slide 10: Agenda
Agenda Summary and introduction Business update Financial results Q&A
Slide 11: Q1 2022: Order intake 857 MSEK, +52%
Q1 2022: Order intake 857 MSEK, +52% ORDER INTAKE, MSEK HIGHLIGHTS +52% 857 • Q1 2022: 857 MSEK (565), +52% (organic +41%) 900 3 000 800 2 750 699 2 500 700 669 • Adjusting for order intake boost of 250 MSEK boost in Q1 2021 606 2 250 600 565 2 000 14% underlying organic order growth 500 1 750 401
Slide 12: Q1 2022: Net Sales 517 MSEK, +14%
Q1 2022: Net Sales 517 MSEK, +14% NET SALES, MSEK HIGHLIGHTS 700 +14% 2 200 • Q1 2022: 517 MSEK (455), +14% (organic +5%) 2 000 600 571 1 800 • Net Sales R12 of 2,034 MSEK (1,560), +30% (organic +22%) 517 500 455 474 472 1 600 416 • As expected somewhat lower Net Sales after strong Q4 405 1 400 400
Slide 13: Underlying demand estimated ~600 MSEK in Q1
Underlying demand estimated ~600 MSEK in Q1 Order Intake, MSEK 857 669 699 250 605 565 140 200 65 100 607 500 505 529 499 Q121 Q221 Q321 Q421 Q122 "Boost" Real demand The volatility throughout the industry supply chain remains and we continue to see a large number of orders to offset longer lead-tim
Slide 14: Backlog continues to buildup by 330 MSEK in Q1
Backlog continues to buildup by 330 MSEK in Q1 ORDER BACKLOG, MSEK ORDERS FOR DELIVERY > 3 MONTHS 1 194 1 200 55% 1 100 51% 51% 50% 50% 49% 1 000 46% 45% 900 864 40% 39% 800 +204% 37% 36% 746 35% 35% 700 30% 28% 600 535 25% 25% 500 20% 20% 393 20% 400 16% 17% 300 271 281 15% 261 264 243 229 243 238
Slide 15: Q1 2022: Sales per region
Q1 2022: Sales per region Sales per region Q1 2022, MSEK EMEA • Net Sales 320 MSEK (280) • 62% of Group sales (62%) • Germany represents 33% Americas 19% 62% APAC • Net Sales 100 MSEK (96) • Net Sales 97 MSEK (79) • 19% of Group sales (21%) 19% • 19% of Group sales (17%) • USA represents 81% • Japan
Slide 16: Q1 2022: EBIT 139 MSEK (26.9% margin)
Q1 2022: EBIT 139 MSEK (26.9% margin) EBIT, MSEK Comments on Q1 results +22% • EBIT Q1: 139 MSEK (114), 26.9% (25%) margin 139 140 500 • Adj. EBIT Q1: 112 MSEK, 21.7% margin 130 121 27 450 120 • Q1 gross margin of 61.8% (64.0%) 114 109 400 110 • Negative effects from price increases of 101 100 350 c
Slide 17: Q1 2022: EPS 2.41 SEK
Q1 2022: EPS 2.41 SEK EPS, SEK Comments on Q1 EPS +25% • EPS of 2.41 SEK (1.93) (Adj. EPS 1.84) 2.5 2.41 8.5 • Net financials of -4 MSEK (1) 8.0 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 1.10 4.0 0.98 1.01 1.0 3.5 Comments on R12 EPS 1.84 3.0 2.5 • EPS of 8.0
Slide 18: Q1 2022: Cash flow from operations of 80 MSEK
Q1 2022: Cash flow from operations of 80 MSEK CASH FLOW, MSEK Comments on Q1 Cash Flow • Cash flow from operating activities of 80 MSEK -39% (132) 160 125% 150 148 • Changes in NWC -50 MSEK (-19) 140 132 130 126 • Component inventory buildup of ~30 MSEK 100% 120 115 116 • NWC in % of sales 6.6% (9
Slide 19: Q1 2022: Net Debt of 299 MSEK
Q1 2022: Net Debt of 299 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage +211% • Net debt / EBITDA of 0.52 (0.21) 500 416 1.8 347 • Net debt / Equity: 0.23 (0.07) 299 1.7 450 84 78 1.6 • Revaluation of Procentec option related Net Debt 402 400 390 80 1.5 of 27 MSEK, no further rev
Slide 20: Q&A
ums Q&A