Ncab Group Ab · OMXSTO:NCAB

Ncab Group Ab — Carnegie Small & Midcap Seminar 2018

26 slides from Ncab Group Ab's conference presentation, Sep 6, 2018

  1. Slide 1: Continued good growth for NCAB

    “Continued good growth for NCAB” Carnegie small and midcap seminar NCAB GROUP © | Carnegie seminar sept 6, 2018 1 September 6, 2018

  2. Slide 2: Agenda

    Agenda 1 NCAB – who we are and what we do 2 The importance of sustainability 3 Financials 4 Strategy and goals NCAB GROUP © | Carnegie seminar sept 6, 2018 2

  3. Slide 3: NCAB – who we are and what we do

    NCAB – who we are and what we do NCAB GROUP © | Carnegie seminar sept 6, 2018 3

  4. Slide 4: NCAB in short

    NCAB in short and at the lowest total cost 15 366 companies specialists 18 45 factories markets VISION MISSION The Number 1 PCB Producer PCBs for demanding customers, wherever we are on time with zero defects and at the lowest total cost

  5. Slide 5: Why are printed circuit boards critical?

    Why are printed circuit boards critical? Printed circuit board Printed circuit board End product 100% 7% 0,5-2% Low High • Printed circuit board share of product value1) NCAB GROUP © | Carnegie seminar sept 6, 2018 5

  6. Slide 6: Why NCAB has a role to fill

    Why NCAB has a role to fill 2000 2016 Europe and Americas 42% Rest of Asia China China 42% 8% 49% Europe and Rest of Asia Americas 50% 9% % of total printed circuit board production % of total printed circuit board production European/US factories market share down from 42% in 2000 to 9% in 2016 NCA

  7. Slide 7: Our attractive niche – HMLV

    Our attractive niche – HMLV High Mix Low Volume Mix Printed circuit board market split (2016) (<USD 2,000 per order line) High-Mix Low-volume (HMLV) HMLV ~30% High High USD 60bn volume ~70% High-Volume (>USD 2,000 per order line) USDbn Total printed circuit board market CAGR: ~3% Low 67 68 71 63 65

  8. Slide 8: Why our customers love us

    Why our customers love us …A LARGE NUMBER …NEED NCAB TO …A LARGE NUMBER OF OF CUSTOMERS INTERACT WITH FACTORIES 1,650 customers in 45 18 main factories markets worldwide predominantly located in China Customer Factory The Integrated PCB Producer presence presence One-stop-shop for printed circuit bo

  9. Slide 9: Full service offering all the way

    Full service offering all the way Quality On-time 1 Design support 2 Prototyping 3 Production 4 5 delivery assurance 9

  10. Slide 10: Seamless transfer from design to volume production saves cost

    Seamless transfer from design to volume production saves cost àNCAB is the single point of contact for the customer and can deliver each step of the process à Poor communication between the prototype manufacturer and the volume producer makes the process inefficient and delays time to market 10

  11. Slide 11: A market leading position worldwide

    A market leading position worldwide REVENUE 2017 USD m ~160 ~165 ~150 ~125 ~100 ~40 ~40 The Integrated PCB Producer The Integrated PCB Producer 11

  12. Slide 12: Our journey

    Our journey 1993-2003 2004-2011 2012 FROM TRADER… ...TO FULL SERVICE SUPPLIER… … WITH WORLDWIDE PRESENCE Macedonia Norway China Poland UK Sweden Finland Denmark Russia Spain Germany France USA Italy Revenue development, LTM CAGR: 16% MSEK 1 460 1 400 1 203 1 226 924 711 561 601 520 374 322 2008 2009

  13. Slide 13: NCAB – the importance of sustainability

    NCAB – the importance of sustainability NCAB GROUP © | Carnegie seminar sept 6, 2018 13

  14. Slide 14: Our sustainability strategy

    Our sustainability strategy The number 1 PCB producer – wherever we are VALUES VISION/ Quality first, Strong relationships and Full responsibility LONG-TERM SUPPLY CHAIN EMPLOYEES CUSTOMERS GOAL Take full responsibility throughout the Attract, keep and develop the best Steer the sector in a green di

  15. Slide 15: Dedicated employees critical to NCAB’s success

    Dedicated employees critical to NCAB’s success Employee engagement ENGAGED NCAB 56% 44% Benchmark ENERGY UNFOCUSED SATISFIED BORED PASSENGERS Finalist within the “Best Service Companies” category CLARITY 15

  16. Slide 16: Financials

    Financials NCAB GROUP © | Carnegie seminar sept 6, 2018 16

  17. Slide 17: Revenue per quarter

    Revenue per quarter MSEK 450 415,8 400 376,1 • Good growth and order intake in 350 most segments – we are increasing our market shares 300 250 • Revenue increased by 11% in SEK, and 14% in USD 200 150 • Order intake increased by 14% in SEK, and by 16% in USD 100 • Continued strong markets in all 50

  18. Slide 18: Profitability

    Profitability MSEK 40 20% 35 34,2 18% 32,0 • Adjusted EBITA on stable levels, 16% 30 reached 32 MSEK (34,2) 14% 25 12% • Adjusted EBITA margin of 7.7% (9.1) 20 10% • Result affected by growth initiatives, 8% 8% IPO preparations and headwinds in 15 currency 6% 10 4% • Earnings per share reached 0.92

  19. Slide 19: Our segments; Nordic

    Our segments; Nordic 18% MSEK 160 20% EBITA margin 17,5% 18% 140 16% • Mature market with low growth 120 106,8 14% 99,6 100 • NCAB have a stable 12% development and moderate 80 10% growth 8% 60 6% • High market share 40 4% 20 • Focus on profitability 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 R

  20. Slide 20: Our segments; Europe

    Our segments; Europe +22% MSEK 160 164,0 20% Revenue growth 18% • High market growth 140 134,1 16% • Ambitious expansion 120 14% 100 12% • Strong development in Germany 10% and in the UK 80 8% 60 • Newest market Italy was 6% established in 2017 4,9% 40 4% • Profitability affected by focus on 20 2% g

  21. Slide 21: Our segments; USA

    Our segments; USA -2% MSEK 160 8% Revenue growth 140 7% • Transition from low-tech to high- 120 6% tech products will take all 2018 before profitability will be restored 100 4,5% 5% 80 72,8 71,5 4% • Positive trend of number of new customers 60 3% 40 2% 20 1% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2

  22. Slide 22: Our segments; East

    Our segments; East +6% MSEK 160 16% Revenue growth • Strong development in China – 140 14% stable performance and tough 120 12% comparables in Russia 9,9% 100 10% • Looking for establishment in 80 73,5 8% 69,6 new countries 60 6% 40 4% 20 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Revenue Adj.

  23. Slide 23: Balance sheet KPIs

    Balance sheet KPIs LTM June -18 June -17 2017 ROE, % 7.0 50.8 30.4 Net debt/Adj. EBITDA Solvency, % 0.6 36.2 1.2 28.0 1.1 19.2 0.6x Net debt/Adj. EBITDA Net working capital, MSEK 153.8 142.0 115.3 NCAB GROUP © | Carnegie seminar sept 6, 2018 23

  24. Slide 24: Strategic plan supporting continued growth

    Strategic plan supporting continued growth 4 Consolidate 3 market Expand 2 geographically Ensure profitability from 1 existing Increase market customers share in Europe, USA and East 2017 Future 24

  25. Slide 25: Financial targets, medium-term

    Financial targets, medium-term Dividend expected Average annual organic Adjusted EBITA Net debt/adjusted EBITDA to correspond to at revenue growth of margin of less than least 8% 8% 2x 50%of net profit NCAB GROUP © | Carnegie seminar sept 6, 2018 25

  26. Slide 26: Q&A

    Q&A NCAB GROUP © | Carnegie seminar sept 6, 2018 26

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