Slide 1: Strong resilience in a weak market
Darkness still looms over Europe Strong resilience in a NCAB Q2 PRESENTATION 23 July 2024 weak market NCAB Q4 report February 15, 2024 NCAB GROUP © | Q2 2024 presentation 1
Slide 2: Today’s presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q2 2024 presentation 2
Slide 3: Key takeaways in Q2 2024
KEY TAKE AWAYS IN Q2 2024 Weak demand in Europe but high activity in M&A Market recovery in Europe slower than anticipated Weak market demand in Europe, notably Germany Nordics with mixed performance, benefitting from Defence growth but lower activity in Construction and energy sectors North America
Slide 4: New acquisitions in the quarter
ACQUISITIONS New acquisitions in the quarter Cumatrix – Belgium 10 MSEK 2 employees ICOM Industrial Components AG - Switzerland 40 MSEK 6 employees EPI Components Trade - Austria 35 MSEK 4 employees NCAB GROUP © | Q2 2023 presentation 4
Slide 5: DVS Global - Italy
ACQUISITIONS DVS Global - Italy Main customer base in Italy, industrial and automotive Quality focused and with a long history Revenue 230 MSEK – good profitability 31 employees in Italy, Switzerland, Hong Kong and China Company culture and values in line with NCAB Transaction expected to be closed
Slide 6: In figures
Q2 2024 In figures Net Sales decreased by 12% to 935 (1,057) MSEK Organic growth -15% in SEK and USD Net Sales in line with order intake in previous quarters Order intake increased by 1% to 938 (924) MSEK Book to bill 1,00 EBITA amounted to 120 MSEK, 12,9% EBITA-margin Gross Margin at continued high
Slide 7: EBITA margin affected by lower net sales
THE SECOND QUARTER IN NUMBERS EBITA margin affected by lower net sales Q2 935 88 120 12.9 % 2024 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -12% -13% -28% -3.0 pp Q2 2023 NCAB GROUP © | Q2 2024 presentation 7
Slide 8: Weaker top line mainly from Europe
Weaker top line mainly from Europe 5 000 4 458 4 500 4 088 3 770 4 000 3 220 3 500 3 000 37.6% 2 500 2 115 36.0% 1 781 2 000 1 617 1 400 1 500 31.7% 32,2% 31,3% 30.2% 30.3% 30.7% 1 000 500 0 2017 2018 2019 2020 2021 2022 2023 LTM 2024 Net sales, MSEK Gross margin, % NCAB GROUP © | Q2 2024 presentati
Slide 9: Still weaker sales but also hesitant order intake
NET SALES AND ORDER INTAKE Still weaker sales but also hesitant order intake MSEK 1200 net sales order intake Net sales decreased by 12% to 935 MSEK in the quarter but in line with last quarters, 1000 Order intake increased by 1% to 938 and for 800 1,057 comparable units in USD decreased by 2% 600 9
Slide 10: EBITA result affected by weak topline and some extra costs
EBITA RESULT EBITA result affected by weak topline and some extra costs EBITA decreased to 120 MSEK (168) 184 20% 180 Costs for IT platform rollout taken with 13 MSEK 16% 160 + 13 MSEK for the bi-yearly all employee 16% 140 168 13% development conference 120 12% 100 120 Lower revenue impacts EBITA 8
Slide 11: Nordic
SEGMENTS Nordic 14% EBITA margin Poland is from 2024 part of segment Nordic to support customer needs 25% 300 22% Order intake decreased by 2% to 226 MSEK (231) and by 3% in USD 250 20% 14% Aerospace & Defence perform well 200 228 15% Denmark losing in building and energy sectors 207 150 Net sales a
Slide 12: Europe
SEGMENTS Europe 12% EBITA margin MSEK Net sales decreased by 20% to 473 MSEK (590) 800 16% Net sales for comparable units decreased by 15% 22% in SEK and 23% in USD 700 12% 14% 600 12% Order intake reached 423 MSEK (487) 500 10% Order intake for comparable units decreased 400 590 473 8% with 15% in
Slide 13: North America
SEGMENTS North America 14% EBITA margin MSEK Order intake amounted to 229 MSEK (163) 20% 200 Order intake for comparable units increased by 17% 18% 29% in both SEK and USD 200 16% 150 14% Interesting new projects won 183 14% 12% Net sales increased by 9% to 200 MSEK (183) 100 10% Net sales for compa
Slide 14: East
SEGMENTS East 20% EBITA-marginal MSEK Market conditions in China remain challenging but 100 NCAB has entered some high-tech demanding 20% 90 customers 20% 80 19% Book to bill at 1.07 70 15% Order intake decreased to 60 MSEK (43) 60 50 56 Net sales flat at 56 MSEK (56) 56 10% 40 EBITA flat at 11.0 MS
Slide 15: Strong finances support upcoming acquisitions
KPI:s Strong finances support upcoming acquisitions 2024 Q2 2023 Q2 ROE % 26.0 39.4 Net debt/EBITDA 1.1 1.2 Equity/Asset ratio % 40.6 37.8 Net working capital, MSEK 305 419 Net working capital/Net sales LTM % 6.2 7.9 Available liquidity, MSEK 1,455 743 NCAB GROUP © | Q2 2024 presentation 15
Slide 16: Good progress in our pipeline
NCAB ACQUISITION PROCESS Good progress in our pipeline Focus on Europe, US and East Approx. 300 identified companies HMLV segment Example of criteria Right customer portfolio No own production Profitable company Shortlist ~ 50 target companies Cumatrix, Belgium EPI Components, Austria 2024 ICOM Indu
Slide 17: A clear strategy for high-pace profitable growth!
A clear strategy for high-pace profitable growth! GEOGRAPHICAL EXPANSION MARKET CONSOLIDATION Expand geographically to new markets using Consolidate market and explore economies of M&A to accelerate process scale for cost and capability advantages 100% FOCUS ON PCBS INCREASE MARKET SHARES Maintain 1
Slide 18: Questions?
Questions? NCAB GROUP © | Q2 2024 presentation 18
Slide 19: Financial calendar 2024
Financial calendar 2024 Tuesday, 5 November Q3 report Wednesday, 12 February 2025 Q4 report Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q2 2024 presentation 19