Slide 1: Specialist in a globally growing niche
“Specialist in a globally growing niche” NCAB GROUP © | 5 October 2018
Slide 2: Agenda
Agenda 1. NCAB in short 2. Our globally growing niche market 3. Focus on sustainability 4. Financials, strategy and goals NCAB GROUP © | 5 October 2018
Slide 3: 1. NCAB in short
1. NCAB in short NCAB GROUP © | 5 October 2018
Slide 4: PCBs for demanding customers, on time with zero defects
15 45 366 18 companies markets specialists factories MISSION VISION PCBs for demanding customers, on The Number 1 PCB Producer time with zero defects and at the wherever we are lowest total cost NCAB GROUP © | 5 October 2018
Slide 5: Why are printed circuit boards critical?
THE COST OF A Why are printed circuit boards critical? FAULTY PCB PCB Production Assembly End product 100% VALUE THE RATIO OF THE PCB COST TO THE PRODUCTION PHASE 7% 0,5-2% PRODUCTION PHASE NCAB GROUP © | 5 October 2018
Slide 6: Our journey
Our journey 1993–2003 2004–2011 2012– FROM TRADER… ...TO FULL SERVICE SUPPLIER… … WITH WORLDWIDE PRESENCE Finland Denmark Russia Spain Poland France Italy Sweden Macedonia Norway China Germany UK USA CAGR: 16% Revenue development, LTM 1 460 MSEK 1 400 1 203 1 226 924 711 561 601 520 374 322 2008 200
Slide 7: Why our customers love us
Why our customers love us 1,650 18 customers in main factories 45 markets predominantly worldwide located in China One-stop-shop for PCB needs Purchasing power Quality control, knowledge and support Lower total cost for customers NCAB GROUP © | 5 October 2018
Slide 8: Shorter time to market with NCAB
Shorter time to market with NCAB NCAB GROUP © | 5 October 2018
Slide 9: 2. Our globally growing niche market
2. Our globally growing niche market NCAB GROUP © | 5 October 2018
Slide 10: Why NCAB has a role to fill
Why NCAB has a role to fill 2000 China 2016 8% Europe and Americas Europe and 9% Americas 42% China 49% Rest of Asia 42% Rest of Asia 50% % of PCB production world wide % of PCB production world wide European/US factories market share down from 42% in 2000 to 9% in 2016 NCAB GROUP © | 5 October 2018
Slide 11: Our attractive niche – HMLV
Our attractive niche – HMLV MIX (<USD 2,000 per order line) High-Mix Low-Volume (HMLV) > Higher product value > Higher quality demand High > Less price pressure > Harder to buy direct (>USD 2,000 per order line) High-Volume Low VOLUME High Low NCAB GROUP © | 5 October 2018 (>50 sqm per order) (<50 s
Slide 12: Growth
Growth PCB market split (2016) Total PCB market HMLV ~30% USD 60bn 71 63 65 67 68 60 High volume ~70% 2016 2017E 2018E 2019E 2020E 2021E HMLV going through advanced traders 8-10 % NCAB GROUP © | 5 October 2018
Slide 13: A market leading position worldwide
A market leading position worldwide ~165 REVENUE 2017 USD m ~160 ~150 ~125 ~100 ~40 ~40 NCAB GROUP © | 5 October 2018
Slide 14: 3. Focus on sustainability
3. Focus on sustainability NCAB GROUP © | 5 October 2018
Slide 15: Our sustainability strategy
Our sustainability strategy NCAB GROUP © | 5 October 2018
Slide 16: Dedicated employees critical to NCAB's success
Dedicated employees Employee engagement critical to NCAB’s success ENGAGED NCAB UNFOCUSED 56% 44% Benchmark ENERGY SATISFIED BORED PASSENGERS Finalist within the “Best Service Companies” category CLARITY NCAB GROUP © | 5 October 2018
Slide 17: 4. Financials, strategy and goals
4. Financials, strategy and goals NCAB GROUP © | 5 October 2018
Slide 18: Revenue per quarter
Revenue per quarter MSEK 450 415,8 400 376,1 > Good growth and order intake in most segments – we 350 are increasing our market 300 shares 250 > Revenue increased by 11% in SEK, and 14% in USD 200 > Order intake increased by 150 14% in SEK, and by 16% in USD 100 > Continued strong markets in 50 all
Slide 19: Stable quarterly income
Stable quarterly income Low seasonality and customer concentration generating stable performance Quarterly revenue split1) Quarterly EBITDA split1) % of year total % of year total 27% 27% 25% 24% 26% 25% 24% 25% 26% 25% 31% 30% 32% 30% 24% 23% 28% 29% 27% 25% 23% 23% 2) 10% 11% Q1 2015 Q2 2015 Q3 20
Slide 20: Low customer concentration
Low customer concentration % of revenue 2017 Top 2: ~11% Top 10: ~27% Others SEK ~50% 1,400m Top 50: ~50% NCAB GROUP © | 5 October 2018
Slide 21: Continued top-line growth and stable gross margins
Continued top-line growth and stable gross margins 1 460 1 400 1 226 1 203 30,3% 30,2% 30,5% 27,4% 2015 2016 2017 2018, q2 LTM Revenue Gross margin NCAB GROUP © | 5 October 2018
Slide 22: Profit per quarter, Q2 2018
Profit per quarter, Q2 2018 MSEK 40 20% 34,2 18% 35 > Adjusted EBITA on 32,0 16% stable levels, reached 30 14% 32 MSEK 25 12% > Result affected by 20 10% 8% 8% growth initiatives, IPO 15 6% preparations and 10 4% headwinds in currency 5 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Adj. EBITA, Mkr
Slide 23: Our segments; Nordic
Our segments; Nordic MSEK 18% EBITA margin 160 20% 17,5% 18% > Mature market with low 140 16% growth 120 106,8 14% > We have a stable 99,6 100 12% development and moderate 80 10% growth 8% > High market share 60 6% > Focus on profitability 40 4% 20 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Rev
Slide 24: Our segments; Europe
Our segments; Europe MSEK +22% Revenue growth 164,0 20% 160 18% > High market growth 134,1 140 16% > Ambitious expansion 120 14% > Strong development in 100 12% Germany and in the UK 10% 80 > Newest market Italy was 8% 60 established in 2017 6% 4,9% 40 > Profitability affected by focus 4% on growth
Slide 25: Our segments; USA
Our segments; USA MSEK -2% Revenue growth > Transition from low-tech to 160 8% high-tech products will take 140 7% all 2018 before profitability 120 6% will be restored 100 4,5% 5% > Positive trend of number of 80 72,8 71,5 4% new customers 60 3% 40 2% 20 1% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2
Slide 26: Our segments; East
Our segments; East MSEK +6% Revenue growth 160 16% > Strong development in China 140 14% – stable performance and tough comparables in Russia 120 12% 9,9% > Looking for establishment in 100 10% new countries 80 73,5 8% 69,6 60 6% 40 4% 20 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Revenue Adj.
Slide 27: Balance sheet KPIs
Balance sheet KPIs 0,6% Net debt/Adj. EBITDA LTM June -18 June -17 2017 ROE, % 7.0 50.8 30.4 Net debt/Adj. EBITDA 0.6 1.2 1.1 Solvency, % 36.2 28.0 19.2 Net working capital, MSEK 153.8 142.0 115.3 NCAB GROUP © | 5 October 2018
Slide 28: Strategic plan supporting continued growth
Strategic plan supporting continued growth Consolidate market Expand geographically Ensure profitability from existing customers Increase market share in Europe, USA and East 2017 Future NCAB GROUP © | 5 October 2018
Slide 29: Financial targets, medium-term
Financial targets, medium-term Dividend expected to Average annual organic Adjusted EBITA Net debt/adjusted correspond to at least revenue growth of margin of EBITDA less than 8% 8% 2x 50% of net profit NCAB GROUP © | 5 October 2018
Slide 30: Ownership structure pre and post IPO
Ownership structure pre and post IPO Shareholder Pre IPO, % Aug 31, % R12 Kapital 61,8% 23,1% Norron funds - 7,2% AP 4 - 7,2% Hans Ståhl, CEO 8,0% 5,2% Länsförsäkringar funds - 4,2% AP 3 - 4,0% Swedbank Robur - 3,9% Cliens funds - 3,6% Christian Salamon, Chariman (via Gogoy AB) 8,7% 3,3% C Worldwide
Slide 31: Q&A
Q&A NCAB GROUP © | 5 October 2018