Hms Networks Ab · OMXSTO:HMS
Hms Networks Ab — Q1 2020 Earnings Presentation
19 slides from Hms Networks Ab's earnings presentation, Apr 23, 2020
Slide 1: HMS Networks Q1 2020 presentation
HMS Networks Q1 2020 presentation April 23rd 2020 Staffan Dahlström, CEO, Joakim Nideborn, CFO
Slide 2: Agenda
Agenda Summary Business update Financial results Q&A
Slide 3: Financial summary of Q1 2020 and R12 months
Financial summary of Q1 2020 and R12 months Q1 R12 months • Net sales 361 MSEK (380), -5% • Net sales 1,500 MSEK (1,425), +5% • Order intake 401 MSEK (387), +4% • Order intake 1,484 MSEK (1,470), +1% • EBIT 67 MSEK (60) • EBIT 250 MSEK (248) • EBIT margin 19% (16) • EBIT margin 17% (17) • Cash flow
Slide 4: We are Connecting Devices
a . . “ms Ne are Connecting Devices™ — Connecting Devices™ We make sure that industrial devices can communicate. Millions of robots, engines, drives, generators and other business-critical equipment rely on HMS technology to get connected Anybus’ Ixxat’ Ewon’ = Intesis” WéBfactory BY HMS NETWORKS BY
Slide 5: HMS is working with Users and Makers
HMS is working with ”Users” and ”Makers” HMS have thousands of industrial customers Users of Industrial Automation Systems Makers of Industrial Equipment These companies work in end-user industries: These companies make: - Intelligent Industrial Machines • Packaging machine, CT-scanner, Windmill, El
Slide 6: Understanding of HMS sales
nits Understanding of HMS sales Design wins, embedded 0% 48% products Gateways, routers and 18% 28% other products Software, subscriptions 4% 2% and services
Slide 7: HMS Financial targets – 20/20/50
HMS Financial targets – 20/20/50 HMS sales development 2010-2019 HMS Financial targets Target Actual avg. 2010-2019 Sales 1 519 growth 20% 18% 1 366 (CAGR) 1 183 +18% 952 EBIT 20% 18% 702 (% margin) 589 501 384 382 345 Dividend 50% 46% (% of EPS) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 8: Agenda
Agenda Summary Business update Financial results Q&A
Slide 9: Corona update
Corona update Q1 Q2 • No major Corona impact on HMS business • Order intake down ~20% compared to 2019 and all team members are OK so far in April • Manufacturing facilities in Spain closed for • Expected challenging quarter 2-3 weeks, now up and running • Short-time work implemented in Sweden • Man
Slide 10: Business update first quarter 2020
Business update first quarter 2020 • Volatile sales and order intake as effect of some customers stocking up for tougher times • In general a positive trend in USA and Asia, driven by Japan where some of our main customers are ordering after some weak quarters • Europe continues to be challenging, e
Slide 11: Agenda
Agenda Summary Business update Financial results Q&A
Slide 12: Order intake 401 MSEK
Order intake 401 MSEK ORDER INTAKE, MSEK Comments on Q1 order intake • Order intake in Q1 401 MSEK (387), corresponding to an increase of 4% 450 +4% 1 600 1 500 • Organic a decrease of 4% 401 400 387 387 1 400 375 372 • Book to bill of 1.11 (1.02) 360 1 300 350 350 336 337 328 1 200 • Even distribut
Slide 13: Net sales 361 MSEK
Net sales 361 MSEK NET SALES, MSEK Comments on Q1 Net Sales • Net Sales of 361 MSEK (380), corresponding to a 450 -5% 1 600 decrease of 5% 416 1 500 400 380 377 1 400 • Organic a decrease of 8% 363 361 353 1 300 350 346 • EMEA: -11% 320 329 1 200 299 305 301 1 100 • Americas: +4% 300 1 000 • Asia: +
Slide 14: Sales per market Q1 2020
Sales per market Q1 2020 Sales per geography Q1 2020, MSEK EMEA • Net Sales 214 MSEK (240) • 59% of Group sales (63) • Germany represents 40% 24% 59% Asia Americas • Net Sales 60 MSEK (55) • • Net Sales 87 MSEK (84) 24% of Group sales (22) 17% • 17% of Group sales (15) • Japan represents 57% • USA r
Slide 15: EBIT 67 MSEK (19% margin)
EBIT 67 MSEK (19% margin) EBIT, MSEK Comments on Q1 results 80 300 • EBIT 67 MSEK (60), EBIT margin of 18.5% (15.8) 74 +12% 72 70 • Q1 gross margin of 62.4% (59.3), positive effects 67 65 250 from a favorable product mix, efficiency 63 63 59 60 improvements and acquisitions 60 56 55 • OPEX decrease
Slide 16: EPS 1.01 SEK
EPS 1.01 SEK EPS, SEK Comments on Q1 EPS • EPS of 1.01 SEK (0.88) 1.2 +15% 5.0 • Net financials of -4 MSEK (-4) 1.09 1.10 1.1 4.5 1.01 1.0 0.98 0.90 4.0 0.90 0.90 0.88 0.9 0.86 0.80 0.78 3.5 0.8 0.7 3.0 0.6 2.5 0.5 0.43 2.0 Comments on R12 months EPS 0.4 1.5 • EPS of 4.56 (3.76) 0.3 1.0 • Net financ
Slide 17: Cash flow from operations of 55 MSEK in Q1
Cash flow from operations of 55 MSEK in Q1 CASH FLOW, MSEK Comments on Q1 Cash Flow 100 +6% 300 • Cash flow from operating activities of 55 MSEK (52) 90 90 • Changes in NWC of -29 MSEK 250 80 • Increased AR of 41 MSEK 73 70 • Inventory reduction of 6 MSEK, we might build up 62 200 some component inv
Slide 18: Net debt 390 MSEK
Net debt 390 MSEK Net debt and leverage, MSEK Comments on Net debt and leverage • Net debt / EBITDA of 1.13 (1.33) 550 -5% 1.8 524 • Net debt / Equity: 0.36 (0.45) 1.7 500 1.6 • Reduced leverage as result of no dividend 96 463 450 1.5 409 1.4 98 402 400 381 390 1.3 365 342 98 1.2 350 335 93 91 1.1 3
Slide 19: Q&A
ums Q&A