Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Q3 2023 Earnings Presentation
26 slides from Ncab Group Ab's earnings presentation, Nov 7, 2023
Slide 1: Strong finances despite a weaker market
Strong finances despite a weaker market NCAB Q3 report November 7, 2023 NCAB GROUP © | Q3 2023 presentation 1
Slide 2: Today's presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q3 2023 presentation 2
Slide 3: Key take aways in Q3 2023
KEY TAKE AWAYS IN Q3 2023 Strong margins and cash flow despite weak market Markets generally weak in all regions Net sales and order intake decreasing because of lower prices and inventory normalization as well as a hesitant demand Order intake stabilizing and signs of more activity in China Automot
Slide 4: Q3 2023 in figures
Q3 2023 In figures Net Sales decreased by 14% to 1,005 (1,168) MSEK Organic growth -27% in SEK. Order intake decreased by 9% to 924 (1,011) MSEK. The same level as in Q2. EBITA amounted to 176 MSEK, a decrease by 4%. Whereof 21 MSEK from lower additional consideration regarding Phase3 acquisition. S
Slide 5: Stronger position on the Iberian peninsula
ACQUISITION IN SPAIN AND STARTUP IN PORTUGAL Stronger position on the Iberian peninsula The Iberian peninsula of growing importance in the electronics market Acquisition of Electronic Advanced Circuits in Spain Mainly in telecom and industry sector. Adding sales of 19 MSEK to the earlier 75 MSEK. St
Slide 6: Mission and vision
16 45 613 31 companies markets specialists factories MISSION VISION PCBs for demanding customers, The Number 1 PCB Producer on time with zero defects, produced wherever we are. sustainably at the lowest total cost. NCAB GROUP © | Q3 2023 presentation 6
Slide 7: Everything needs a PCB and each PCB is unique
DIGITALIZATION, ELECTRIFICATION AND IOT... Everything needs a PCB and each PCB is unique NCAB GROUP © | Q3 2023 presentation 7
Slide 8: Integrated PCB production
BUSINESS MODEL Integrated PCB production NCAB GROUP © | Q3 2023 presentation 8
Slide 9: Industries we serve
Industries we serve NCAB GROUP © | Q3 2023 presentation 9
Slide 10: Our attractive niche – HMLV
OUR MARKET Our attractive niche – HMLV MIX (<USD 2,000 per order line) High-Mix Low-Volume (HMLV) > Higher product value > Higher quality demand High > Harder to buy direct > Less price pressure High-Volume (>USD 2,000 per order line) Low VOLUME High Low NCAB GROUP © | Q3 2023 presentation 10 (>50 s
Slide 11: A history of Growth
MILLION SEK A history of Growth 4,458 5 000 MSEK REVENUE 4 500 4 000 3 500 3 000 2 500 2 000 Ulf Anderssson AB 1 500 1 000 500 0 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Slide 12: The third quarter in numbers
THE THIRD QUARTER IN NUMBERS Performing well despite weaker market in the quarter Q3 1,005 92.6 176 17.5 % 2023 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -14% -16% - 4% +1.8 pp Q3 2022 NCAB GROUP © | Q3 2023 presentation 12
Slide 13: Record gross margin offset weaker top line
Record gross margin offset weaker top line 35.1% 31.7% 32.2% 31.3% 30.2% 30.3% 30.7% NCAB GROUP © | Q3 2023 presentation 13
Slide 14: Net sales: tough comparables and weaker markets
NET SALES Tough comparables and weaker markets MSEK Net sales decreased by 14% to 1,005 MSEK and 1400 for comparable units in USD decreased by 28%. 1200 1,168 Order intake decreased by 9% to 924 MSEK and 1,005 1000 for comparable units in USD decreased by 15%. 800 Order intake in Q3 flat vs Q2. 600
Slide 15: EBITA result: strong profitability despite lower top line
EBITA RESULT Strong profitability despite lower top line EBITA decreased by 4% to 176 MSEK (184). MSEK 17.5% 18% 180 Adjusted for costs for IT-platforms EBITA 15.7% 16% 160 reached 161 MSEK. 140 184 14% 176 The EBITA margin increased to 17.5% (15.7). 12% 120 Adjusted margin 15.4%. 100 10% 80 8% Gros
Slide 16: Segments: Nordic
SEGMENTS Nordic 19% EBITA margin MSEK Some business moved to segment Europe. Adjusted* order intake decreased by 20% to 195 300 MSEK and by 21% in USD. 18.1% 313 20% 19.1% Net sales decreased to 200 MSEK (313), with 250 261 adjusted* net sales decreasing by 18% in SEK and 20% in USD. 15% 200 245 Nor
Slide 17: Segments: Europe
SEGMENTS Europe 9% EBITA growth MSEK Net sales decreased by 4% to 567 MSEK (591). 800 20% Adjusted* net sales for comparable units 18% 700 659 decreased by 20% in SEK and 22% in USD. 16% 600 15.1% 14% Order intake 506 MSEK (500). Adjusted* order 13.2% 500 intake for comparable units decreased with 1
Slide 18: Segments: North America
SEGMENTS North America 14% EBITA margin MSEK Order intake amounted to 176 MSEK, same level 20% as last year. Adjusted* order intake for 200 18% comparable units decreased by 27% in SEK and 17.1% 28% in USD. 199 16% 150 14% Net sales decreased by 6% to 186 MSEK (199). 13.7% Adjusted* net sales for co
Slide 19: Segments: East
SEGMENTS East 21% EBITA-marginal MSEK Market conditions in China remain muted but 100 25% signs of increasing activity. 90 20.5% 21.1% Order intake decreased to 48 MSEK (53). 80 20% 70 Net sales decreased with 21 % to 52 MSEK 60 15% (66) but decreased with 22% in USD. 50 66 52 EBITA decreased to 10.
Slide 20: NCAB acquisition process: good progress in our pipeline
NCAB ACQUISITION PROCESS Good progress in our pipeline Focus on Europe, US and East Approx. 200 identified companies HMLV segment Example of criteria Right customer portfolio No own production Profitable company Shortlist 51 target companies adding SEK 3700 million Electronic Advanced Circuits, Spai
Slide 21: Strong finances support upcoming acquisitions
KPI:s Strong finances support upcoming acquisitions Sept 2023 Sept 2022 ROE % 32.4 42.4 Net debt/EBITDA 0.9 1.0 Equity/Asset ratio % 40.5 35.5 Net working capital, MSEK 308 487 Net working capital/Net sales LTM % 5.3 10.6 Available liquidity, MSEK 962 950 NCAB GROUP © | Q3 2023 presentation 21
Slide 22: HMLV market breakdown & NCAB market shares
HMLV market breakdown & NCAB market shares NCAB SHARE ~1,9% AMERICAS 16% ASIA NCAB SHARE (EX CN/JP) ~ 0% 33% EUROPE NCAB SHARE 18% ~7,5% Global HMLV market of ~25 BUSD JAPAN CHINA 9% 24% NCAB SHARE ~ 0% NCAB SHARE ~ 0,4% NCAB GROUP © | Q3 2023 presentation 22
Slide 23: 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 24: Financial targets
FINANCIAL TARGETS This is where we are aiming Net sales (MSEK) EBITA (MSEK) Distribute cash Net debt/adjusted EBITDA less than 8,000 1,000 2x Available Approx. 50% of net profit in 2026 in 2026 NCAB GROUP © | Q3 2023 presentation 24
Slide 25: Questions?
Questions? NCAB GROUP © | Q3 2023 presentation 25
Slide 26: Financial calendar 2024
Financial calendar 2024 Thursday, 15 Feb Q4 report Wednesday, 10 April Annual Report 2023 Thursday, 25 April Q1 Report 2024 Wednesday, 8 May 2024 AGM Tuesday, 23 July Q2 report Tuesday, 5 November Q3 report Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q3 2023 presentati