Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Danske Bank presentation (March 2022)
24 slides from Ncab Group Ab's conference presentation, Mar 16, 2022
Slide 1: NCAB at Danske Bank
NCAB at Danske Bank March 16 2021 Sticking to our growth plans despite difficult times
Slide 2: Today's presenters
Today’s presenters PETER KRUK CEO ANDERS FORSÉN CFO NCAB at Danske Bank March 16 2021 2
Slide 3: Comments to the current situation in the world - Ukraine
Comments to the current situation in the world - Ukraine Deliveries of PCBs to Russia halted Roughly 5 percent of our sales and EBITA in Russia Our personnel, 50 people supported No exposure to Ukraine Donation to UNHCR for Ukraine SEK 1 million NCAB at Danske Bank March 16 2021 3
Slide 4: Comments to the current situation in the world - Covid
Comments to the current situation in the world - Covid Covid situation in China leads to further lockdowns Hongkong and Shenzhen key areas impacted Currently limited impact on our manufacturing base Primary impact on logistics NCAB local Factory Management managing the situation NCAB at Danske Bank
Slide 5: Strong full year 2021 - organic growth topped by acquisitions
Strong full year 2021 - organic growth topped by acquisitions Full year Net Sales of 3,220 MSEK with organic growth of 39% in USD. Acquisitions bring growth to 63% in USD NCAB organic growth significantly outperforms market development underlining market share gains Continued robust order intake, hi
Slide 6: Important events in the fourth quarter 2021
Important events in the fourth quarter 2021 New financing adding SEK 750 million in place for Elmatica and future acquisitions Extra General Meeting on December, 15 decided on: Extra dividend of SEK 10 per share in dec Share split 10:1 on carried out December 29, 2021 Acquisitions of Elmatica and ME
Slide 7: The acquisition of Elmatica – a great match
The acquisition of Elmatica – a great match Strong quality PCB trader founded in 1971 Similar corporate cultures HQ in Oslo and subsidiaries in Sweden, Denmark, Germany and Hong Kong 45 employees Net sales of approx. 370 MSEK in 2021, and an EBITA of approx. 45 MSEK Purchase price was 315 MSEK with
Slide 8: META Leiterplatten in Germany
ACQUISITION ANNOUNCED ON DECEMBER 27,2021 META Leiterplatten in Germany Privately owned, founded in 2000 Net sales about 85 MSEK in 2021, EBITA 4.5 MSEK. 17 employees High quality, similar business model as NCAB Synergies will emerge in suppliers, payment terms as well as in logistics and laboratory
Slide 9: Mission and vision
16 45 597 29 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 at Danske Bank March 16 2021 9
Slide 10: PCBs for making PCB-As
THIS IS WHAT WE DO PCBs for making PCB-As NCAB at Danske Bank March 16 2021 10
Slide 11: Our growth journey has accelerated
Our growth journey has accelerated IPO RedBoard 1993 2004 M-Wave 2018 Flatfield PreventPCB Elmatica 2011 Multiprint, PD circuit UAE BBG sas-electronics META Altus Macedonia Norway China Germany UK USA Malaysia Sweden Finland Denmark Russia Spain Poland France Italy Benelux NCAB at Danske Bank March
Slide 12: The pipeline is robust
The pipeline is robust Focus on Europe Approx. 170 identified companies and US markets HMLV segment Right customer portfolio Example of criteria No own production Profitable company Shortlist 45 target companies META, Germany Elmatica, Norway 2021 sas – electronics, Germany Redboard Cicuits, USA Pre
Slide 13: The integration process important for synergies
The integration process important for synergies Marketing IT Finance Focus to use one brand Shared tools, – one company Economies of systems scale and platforms Operations Factory and logistics Sales Sustainability Strong relationships – customer contacts and visits People & Culture Acquired compani
Slide 14: NCAB Group outperformed strong market
NCAB Group outperformed strong market 2021 market growth 23% NCAB org. growth 39% NCAB at Danske Bank March 16 2021 14
Slide 15: Good underlying market growth expected in coming years
OUR MARKET Good underlying market growth expected in coming years Segment % World - 2018 Average: 4.5% 30 % Consumer/Stand alone apps Embedded/Professional apps Key Drivers under the average above to average Industry 4.0 25 % Infotainment, Autononomous, 20 % Industrial & Robots Connected vehicles Co
Slide 16: Why are printed circuit boards critical?
THE COST OF A FAULTY PCB OUR MARKET Why are printed circuit boards critical? PCB Production Assembly End product 100% VALUE THE RATIO OF THE PCB COST TO THE PRODUCTION PHASE PCB share of product value 7% 0.5-2% PRODUCTION PHASE 16
Slide 17: 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 > Less price pressure > Harder to buy direct High-Volume (>USD 2,000 per order line) Low VOLUME High Low NCAB at Danske Bank March 16 2021 17 (>50 sqm
Slide 18: Different applications, many new technologies
OUR MARKET Different applications, many new technologies NCAB at Danske Bank March 16 2021 18
Slide 19: Low customer concentration and diversified sectors
THIS IS NCAB Low customer concentration and diversified sectors % of revenue Top 2: Other ~7% ~12% Power: Top 10: ~7% Industrial: ~21% ~45% Others ~56 % Medical: ~13% Telecom: Top 50: ~9% ~44% Automotive ~14% NCAB at Danske Bank March 16 2021 19
Slide 20: A growing market leading position worldwide
THIS IS NCAB A growing market leading position worldwide Revenue in 2017 as presented in IPO 2018 Revenue in 2020 proforma incl acquisitions 350 350 330 300 300 250 250 200 ~165 ~160 200 ~150 150 ~125 ~150 ~150 ~160 ~100 150 ~120 100 100 50 ~35 ~35 50 0 0 The Integrated PCB Producer The Integrated P
Slide 21: Good growth and margins in all segments in 2021
Good growth and margins in all segments in 2021 Sales growth in USD EBITA margin +54% incl acquisitions NORDIC +34% excl 16.1% +84% incl acquisitions EUROPE +55% excl 10.6% +48% incl acquisitions NORTH AMERICA +25% excl 12.5% EAST +41% 14.7% NCAB at Danske Bank March 16 2021 21
Slide 22: Top-line growth accelerating with stable margins
Top-line growth accelerating with stable margins NCAB at Danske Bank March 16 2021 22
Slide 23: KPIs
KPIs 2021 2020 ROE % 38.7 24.3 Net debt/EBITDA 1.7 -0.4 Equity/Asset ratio % 29.1 47.2 Net working capital, MSEK 443.6 163.0 Net working capital/Net sales LTM % 11.0 7.9 Available liquidity, MSEK 657.0 661.3 NCAB at Danske Bank March 16 2021 23
Slide 24: We continue to deliver on our strategic plan!
We continue to deliver on our strategic plan! Consolidate market Expand geographically Deeper collaboration with existing customers Increase market share in Europe, USA and East NCAB at Danske Bank March 16 2021 24