Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Q2 2020 Earnings Presentation
21 slides from Ncab Group Ab's earnings presentation, 2020
Slide 1: Strong Q2 results despite weaker economy
Strong Q2 results despite weaker economy 1 NCAB GROUP © | Q2 2020 PRESENTATION
Slide 2: Today's presenters
Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q2 2020 PRESENTATION 2
Slide 3: Summary of Q2 2020 for NCAB
Summary of Q2 2020 for NCAB A quarter affected by the corona pandemia Weaker order intake due to preordering by customers in the first quarter and ”closed” countries Succesful acquisitions drives growth Organic growth and margins up in the US Cost savings have given a strong result NCAB GROUP © | Q2
Slide 4: Events and highlights during and after Q2
Events and highlights during and after Q2 4 April - Peter Kruk was announced to succeed Hans Ståhl as CEO in October 24 April - acquisition of BBG, Florida, USA effective 1 May 24 April - directed share issue conducted at market price 5 June - Annual General Meeting. No dividend to be paid out NCAB
Slide 5: Effects of the Corona pandemia in Q2
Effects of the Corona pandemia in Q2 Situation in NCAB Group Factories in China back in production end of February Most of Southern Europe and USA closed down from end of March to end of May Customer deliveries have worked well despite the situation Orders were in the first quarter placed earlier, d
Slide 6: The second quarter in numbers
The second quarter in numbers Strong result and growth thanks to acquisitions Q2 581 60 59.7* 10.3%* 2020 Net sales, MSEK Net sales, MUSD Adj. EBITA, MSEK Adj. EBITA margin Change vs +23% +20% +60% +2.4 Q2 2019 *) adjusted for transaction costs re acquisition NCAB GROUP © | Q2 2020 PRESENTATION 6
Slide 7: Acquisition of Flatfield, Netherlands
PRESS RELEASE MARCH 12 2020 Acquisition of Flatfield, Netherlands Leading PCB Supplier in the Benelux also selling in Germany Turnover of about SEK 300 million in 2019 EBITA of approximately SEK 25 million 50 employees in the Netherlands, Germany and China Purchase price SEK 182 million, EBITA multi
Slide 8: Acquisition of BBG in Largo, Florida, USA
PRESS RELEASE APRIL 24 2020 Acquisition of BBG in Largo, Florida, USA Leading PCB Supplier in the US selling also in Canada Main suppliers in Taiwan, without US import tariffs Turnover of just over SEK 280 million in 2019 EBITA SEK 18 million 30 employees where of 10 in Taiwan Purchase price SEK 125
Slide 9: Differences between the segments in Q2
Differences between the segments in Q2 Growth EBITA margin NORDIC - 14.9% + 26% incl Flatfield EUROPE - 14% excl 7.7% + 97% incl Altus, BBG tariffs NORTH AMERICA + 9% excl 8.1% EAST - 2% 16,8% NCAB GROUP © | Q2 2020 PRESENTATION 9
Slide 10: Increased top-line growth due to acquisitions
Increased top-line growth due to acquisitions 1,926 1,781 1,617 1,400 1,226 1,203 31.3% 31.7% 30.3% 30.2% 31.1% 27.4% 2015 2016 2017 2018 2019 2020:2 LTM Net sales, MSEK Gross margin, % NCAB GROUP © | Q2 2020 PRESENTATION 10
Slide 11: Growth in net sales due to acquisitions
Growth in net sales due to acquisitions MSEK 580.6 23 % growth in net sales due to acquisitions, in USD +20% 473.1 Net sales from comparable units decreased by 3 % compared to Q2 2019 Order intake increased by 8% in MSEK, for comparable units a decrease by 15 percent. Q2 2019 Q3 2019 Q4 2019 Q1 2020
Slide 12: Strong result and improved EBITA margin in the quarter
Strong result and improved EBITA margin in the quarter MSEK 50.6 48 12,0% EBITA increased to 50,6 MSEK (37,3) 43 EBITA margin of 8,7% (7.9) 38 37.3 10,0% EBITA excl transaction cost 59,7 33 8,0% 8.7% MSEK or 10,3% 28 Earnings per share reached 1,12 23 6,0% SEK (1.39) 18 13 4,0% State support from a
Slide 13: Nordic
SEGMENTS Nordic MSEK 200 15% 20% EBITA margin Net sales was flat 134.3 MSEK 180 18% (133.9) 160 14.9% 16% EBITA increased to 20.0 MSEK (17.5) 140 14% 120 133.9 134.3 12% EBITA margin still strong at 14.9% 100 10% Order intake decreased by 14% in 80 8% the quarter 60 6% 40 4% 20 2% 0 0% Q2 2019 Q3 20
Slide 14: Europe
SEGMENTS MSEK Europe 26% 230.7 20% Sales growth Net sales increased with 26% to 230.7, 200 183.3 18% without Flatfield a decrease of 14% 16% Weaker sales in Southern Europe and 150 14% UK due to Covid-19 and exposure to 12% one customer in the transport sector 10% 100 Strong growth in Germany 7,7% 8
Slide 15: North America
MSEK SEGMENTS North America 140 93% 14% 124.9 Net sales increased by 97% to 125 120 Net sales 12% MSEK (63) growth in USD Impacts from acquisitions of Altus, 100 10% BBG and tariffs now included in net sales. Organic growth was 9 percent 80 8.1% 8% 63.3 EBITA increased to 10.1 MSEK (4.0), 60 6% corr
Slide 16: East
SEGMENTS East Net sales decreased 2% to 90.7 MSEK 200 MSEK -2% 20% Net sales partly because of the shutdown in 180 16.8% 18% Russia in April 160 16% EBITA increased to 15.2 MSEK (9.8), 140 14% corresponding to a margin of 16.8% 120 12% (10.6). 100 10% Main reasons were increased 80 92.6 8% 90.7 prof
Slide 17: KPIs
KPIs June 2020 Dec 2019 ROE, % 27.4 39.8 Net debt/Adj. EBITDA 0.0 0.2 Equity/Asset ratio, % 43.3 39.9 Net working capital, MSEK 177.8 125.8 Available liquidity, MSEK 578 188 NCAB GROUP © | Q2 2020 PRESENTATION 17
Slide 18: Financial targets and dividend policy, medium term
Financial targets and dividend policy, medium term Dividend expected to Annual average growth Average adjusted EBITA Net debt/adjusted correspond to at least before acquisitions of margin of EBITDA less than 8% 8% 2x 50% of net profit NCAB GROUP © | Q2 2020 PRESENTATION 18
Slide 19: Delivering on our strategic plan
Delivering on our strategic plan Consolidate market Expand geographically Deeper collaboration with existing customers Increase market share in Europe, USA and East NCAB GROUP © | Q2 2020 PRESENTATION 19
Slide 20: Next quarterly report
Next quarterly report: Third quarter July-september: November, 10 2020 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q2 2020 PRESENTATION 20
Slide 21: Thank you!
Thank you! Thank you! Thank you! NCAB GROUP © | Q2 2020 PRESENTATION 21