Hms Networks Ab · OMXSTO:HMS
Hms Networks Ab — Q3 2023 Earnings Presentation
25 slides from Hms Networks Ab's earnings presentation, Oct 17, 2023
Slide 1: HMS Networks Q3 2023 presentation
HMS Networks 03 2023 presentation Staffan Dahlstr6m, CEO, Joakim Nideborn, CFO October 18, 2023
Slide 2: Summary and introduction
Summary and introduction Business update Financial results Q&A
Slide 3: Q3 summary and YTD summary
Q3 summary YTD summary • Net sales 789 MSEK (624), +26% • Net sales 2,265 MSEK (1,742), +30% • Order intake 492 MSEK (675), -27% • Order intake 1,877 MSEK (2,346), -20% • EBIT 223 MSEK (179) • EBIT 584 MSEK (461) (Adj. 434 MSEK) • EBIT margin 28.2% (28.7) • EBIT margin 25.8% (26.5) (Adj. 24.9%) • Ca
Slide 4: HMS Networks - Hardware Meets Software
HMS Networks - Hardware Meets Software Our field: a +9,000,000 | : o aa ndustrial ICT 5 ( - = devices connected +400,000 jerneRenoree Sarena S At the forefront of machines connected technology Communication to cloud systems Technlogy) Al | 0 e 33% in Sales a worldwide Partners in 50 Head office in H
Slide 5: HMS enables valuable data and insights
HMS enables valuable data and insights - allowing our customers to increase productivity and sustainability HMS makes hardware & software products which enable machines ta communicate “a ANTIS “a
Slide 6: Manufacturing, Transportation & Infrastructure, Power & Energy
Transportation & Manufacturing Power & Energy Infrastructure Ports, Marine, Power Generation, Commercial buildings, Factory Automation, Utilities, Data Centers, Power Distribution, Industrial buildings, Process Automation Material Handling, Power Management Hotels, Offices, Retail Warehousing etc. I
Slide 7: Makers of industrial equipment, users of automation systems
Makers of industrial equipment Users of automation systems
Slide 8: Customer groups and go-to-market
Makers of industrial equipment Users of automation systems Device Machine End users & manufacturers builders System integrators 44% of revenue 25% of revenue Revenue 31% of revenue Specified as standard Project Sales Design Wins or Business model Product Sales option in BOM Direct Sales & Direct Sal
Slide 9: Organic growth, M&A, People, Planet
Organic growth M&A People Planet Organic growth M&A People Operational Efficiency Sales Excellence Planet Operational Efficiency Sales Excellence
Slide 10: HMS Strategic Targets 2025
HMS Strategic Targets 2025 Science The HMS Effect qf based feam x3 Boni targets by 2030 lu Zz 7 z= a 7H +50 O730% Customer Female managers NPS by 2025 73,14 illion LTE ae » by 2025 PEOPLE GROWTH
Slide 11: Business update
Summary and introduction Business update Financial results Q&A
Slide 12: Business update: record quarter in sales, order intake normalization
• New record quarter in sales – supported by large order book • Order intake normalization and inventory adjustments impacting short term orders – will continue for a couple of quarters • Underlying market relatively stable • The recent disruptions in the global supply chain of electronic components
Slide 13: Financial results
Summary and introduction Business update Financial results Q&A
Slide 14: Order Intake, MSEK
Order Intake, MSEK Analysis and conclusions • Q3 2023: 492 MSEK (675), -27% (organic -25%) 900 857 -27% 3 500 815 800 718 3 000 • YTD 2023: 1,877 MSEK (2,346), -20% (organic -20%) 669 699 675 682 703 700 600 565 606 2 500 • Book-to-bill excluding FX effects of 0.62 in Q3 492 2 000 500 401 408 • Orde
Slide 15: Underlying Order Intake 2021-2023, MSEK
≈ Underlying Order Intake 2021-2023, MSEK 857 815 50 718 703 669 699 250 675 682 35 150 85 492 605 50 565 140 200 50 65 100 633 682 698 642 607 615 575 500 505 529 499 -30 -150 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 FX revaluation of already existing order book Order Normalization/De
Slide 16: Underlying Order Intake bridge, Q322 to Q323
Underlying Order Intake bridge, Q322 to Q323, MSEK -27% +12% 675 50 642 50 575 78 11 150 +14% 492 Order intake Q322 Boost Q322 Revaluation Normalized FX (vs Q322) Growth Normalized Order Reported Order orderbacklog OI Q322 OI Q323 Normalization intake Q323 Q322 Q323
Slide 17: Net Sales, MSEK
Net Sales, MSEK Analysis and conclusions +26% • Q3 2023: 789 MSEK (624), +26% (organic +20%) 789 • YTD 2023: 2,265 MSEK (1,742), +30% (organic +23%) 800 764 773 3 500 703 700 601 624 3 000 • Continued improvement in delivery capacity, 40 MSEK delay from Q2 is 600 571 517 2 500 delivered in full in Q
Slide 18: Order Backlog and Backlog/R12 Net Sales
Order Backlog, Q32019 – Q32023, MSEK Order Backlog/R12 Net Sales, Q32019 – Q32023, MSEK 1,0 3 200 0,7 0,7 3 000 0,6 0,9 0,6 2 800 0,6 0,6 0,8 2 600 2 400 0,5 0,5 0,7 2 200 0,5 0,4 2 000 0,4 0,6 1 800 0,4 0,4 -16% 0,5 1 453 1 600 0,3 1 408 1 407 1 316 1 316 1 400 0,3 0,4 1 195 0,3 1 106* 1 200 864 1
Slide 19: Sales per region Q3 2023, MSEK
Sales per region Q3 2023, MSEK EMEA • Net Sales 486 MSEK (378) • 62% of Group sales (61%) • Germany represents 41% 20% 62% Americas 18% APAC • Net Sales 160 MSEK (127) • 20% of Group sales (20%) • Net Sales 143 MSEK (119) • USA represents 54% • 18% of Group sales (19%) • Japan represents 49% • China
Slide 20: EBIT, MSEK
EBIT, MSEK Analysis and conclusions • EBIT Q3: 223 MSEK (179) +25% 240 800 • EBIT margin Q3: 28.2% (28.7) 223 220 750 211 700 • EBIT YTD: 584 MSEK (461, Adj. 434) 200 192 650 179 • EBIT margin YTD: 25.8% (26.5, Adj. 24.9) margin 180 600 160 150 550 • New record level for operating profit 139 143 500
Slide 21: EPS, SEK
EPS, SEK Analysis and conclusions +27% Q3: 4,00 14 • EPS of 3.69 SEK (2.90) 3,70 3,69 13 3,50 • Net financials of -3 MSEK (-11) 3,25 12 11 3,00 2,90 10 YTD: 2,41 2,48 9 2,50 2,33 • EPS of 9.87 (7.64) (Adj. 7.07) 8 2,02 0,57 2,00 1,93 1,81 1,85 7 • Net financials of -9 MSEK (-18) 6 1,46* 1,50 1,33 5
Slide 22: Cash flow, MSEK
Cash flow, MSEK Analysis and conclusions +42% Q3: 180 177 125% • Cash flow from operating activities of 167 MSEK 170 167 (118) 160 155 150 148 • Changes in NWC → -78 MSEK (-52) 100% 140 132 130 126 • Inventory buildup of 59 MSEK 115 116 118 120 110 104 • NWC in % of sales 12.0% (7.7) 75% 100 90 83 8
Slide 23: Net debt and leverage, MSEK
Net debt and leverage, MSEK Analysis and conclusions 540 • Net debt / EBITDA of 0.43 (0.62) 550 1.8 500 416 1.7 • Net debt / Equity: 0.21 (0.29) 347 299 1.6 450 84 415 390 1.5 • No interest-bearing net debt 78 410 383 400 390 80 295 1.4 80 350 1.3 111 163 300 1.2 300 263 95 1.1 274 284 250 1.0 103 1
Slide 24: Main theme of the quarter: order intake normalization and destocking
• Main theme of the quarter, order intake normalization and destocking • Underlying organic order intake is up by 14% year-over-year, slightly down sequentially – showing relatively stable underlying market • Solid deliveries in the quarter, delivery capacity not expected to be a limiting factor ahe
Slide 25: Questions?
Questions? Ss aE, <A SSS