HMS Networks AB (publ) (HMS) Q1 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:05.076 and doing more investments in becoming a manufacturing company again, we think that 00:00:05.076 -- 00:00:09.121 this is a midterm opportunity for HMS. 00:00:09.121 -- 00:00:14.186 But tariffs is complex, and I just want to show one picture that illustrate how 00:00:14.186 -- 00:00:19.232 we see this. And sorry for the bit crowded picture, but let's focus on the 00:00:19.232 -- 00:00:23.496 circle one here. Made in Europe, sold to North America. 00:00:23.496 -- 00:00:27.841 This is around 15% of our group sales of finished goods. 00:00:27.841 -- 00:00:29.543 And 00:00:29.543 -- 00:00:33.408 right now we see that there's a tariff of 10%. 00:00:33.408 -- 00:00:37.973 Some of our products is under this exempt rules as well, but it's still unclear with 00:00:37.973 -- 00:00:42.359 this custom codes and things like this. So that's one part. 00:00:42.359 -- 00:00:47.545 Second part, and the bullet with the two here, made in Europe that 00:00:47.545 -- 00:00:53.312 is sold, well, shipped to US, but it's for customers in Canada and Mexico. 00:00:53.312 -- 00:00:58.700 This is less than 5% of our revenue. Same here, 10% tariffs. 00:00:58.700 -- 00:01:03.749 But here we also have other opportunities to do direct shipment to Canada or Mexico. 00:01:03.749 -- 00:01:07.937 So all in all, you can see that made in Europe and for the U.S. 00:01:07.937 -- 00:01:10.702 market is some 10% 00:01:10.702 -- 00:01:17.170 of our revenue. Number three here, Asia and China to U.S. 00:01:17.170 -- 00:01:22.176 This is mainly components that we use in our red line 00:01:22.176 -- 00:01:25.077 or our North American manufacturing. 00:01:25.179 -- 00:01:30.645 Very high tariffs from China and then 10 percent from rest of them 00:01:30.645 -- 00:01:37.012 from As...