Slide 1: Strong earnings in the fourth quarter
Strong earnings in the fourth quarter NCAB GROUP © | Q4 2019 PRESENTATION
Slide 2: Today’s presenters
Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q4 2019 PRESENTATION
Slide 3: Agenda
Agenda 1. NCAB – who we are and what we do 2. Q4 in short 3. The Corona virus: actions and effects 4. Q4 financials 5. Summary 6. Q&A NCAB GROUP © | Q4 2019 PRESENTATION
Slide 4: Mission and vision: PCBs for demanding customers
17 45 395 23 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 © | Q4 2019 PRESENTATION
Slide 5: PCBs for making PCB-As
THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q4 2019 PRESENTATION
Slide 6: Our journey
PD Circuit M-Wave UAE Multiprint Altus 2012 2014 2015 2019 2019 Our journey 1993–2003 2004–2011 2012– Finland Denmark Russia Spain Poland France Italy Benelux Sweden Macedonia Norway China Germany UK USA Malaysia CAGR: 15.2% 1,781 Revenue development 1,400 1,617 MSEK 1,203 1,226 924 711 520 561 601
Slide 7: The quarter in numbers
The quarter in numbers Results strong even though growth is slower Q4 422 45 41.2 9.7% 2019 Net sales, MSEK Net sales, MUSD Adj. EBITA, MSEK Adj. EBITA margin Change vs +4% – +14% +80 Q4 2018 Basis Points NCAB GROUP © | Q4 2019 PRESENTATION
Slide 8: Jan-Dec 2019 accumulated
Jan-Dec 2019 accumulated Jan- Dec 1,781 189 165.4 9.3% Net sales, MSEK Net sales, MUSD Adj. EBITA, MSEK Adj. EBITA margin 2019 Change vs +10% +2% +15% +40 Basis Points 2018 NCAB GROUP © | Q4 2019 PRESENTATION
Slide 9: Events and highlights during and after Q4
Events and highlights during and after Q4 Acquisition of Altus-PCB in the US with good contribution Recruitment process of new CEO ongoing Second place in ”Employer of the year” The Corona virus will impact Q1 2020 Suggested dividend of 4.75 SEK (4.50) NCAB GROUP © | Q4 2019 PRESENTATION
Slide 10: The Corona virus – process and impact
The Corona virus – process and impact Situation Own employees not infected Factories 40-50% personnel in place mid February Impact of freight problems and components supplies uncertain Process FAQ for customers and internally Active prioritization of order flow closely with customers and factories D
Slide 11: Differences between the segments
Differences between the segments Growth EBITA margin NORDIC +21% 12.6% EUROPE -2% 6.0% NORTH AMERICA -4% 9.4% EAST +2% 13.4% NCAB GROUP © | Q4 2019 PRESENTATION
Slide 12: Slower top-line growth but increased gross margin
Slower top-line growth but increased gross margin 1,781 1,617 1,400 1,203 1,226 31.3% 31.7% 30.3% 30.2% 27.4% 2015 2016 2017 2018 2019 Net sales, MSEK Gross margin, % NCAB GROUP © | Q4 2019 PRESENTATION
Slide 13: Slower growth in net sales and order intake in the quarter
Slower growth in net sales and order intake in the quarter MSEK Continued weaker growth in net sales and order intake weakening from Q3 Growth strongest in Nordics and East. North America recovering Net sales increased by 4% in SEK 445.9 473.1 439.8 422.4 and was flat in USD 406.7 Order intake incre
Slide 14: Strong result and EBITA margin in the quarter
Strong result and EBITA margin in the quarter MSEK 45 20% EBITA increased by 14%, reached 41.2 40 18% 41.2 MSEK (36.0) 36.0 35 16% EBITA margin of 9.7% (8.9) 30 14% 12% Stronger result due to cost efficiency, 25 9.7% 10% slower pace in hiring 20 8.9% 8% 15 Earnings per share reached 1.88 6% 10 4% SE
Slide 15: Continued strong growth in Nordic
SEGMENTS Continued strong growth in Nordic 13% MSEK EBITA margin 200 20% Continued strong growth – net sales 180 18% increased by 21% to 125.1 MSEK 16.1% 160 16% (103.7) 140 12.6% 14% Growth excl. acquired Multiprint was 120 125.1 12% 5% 100 103.7 10% 80 8% EBITA was 15.8 MSEK (16.7) a 60 6% decreas
Slide 16: Europe is slowing down
SEGMENTS Europe is slowing down 6% MSEK EBITA margin 200 20% Net sales slowing down 2% to 148.4 180 18% Weaker sales especially in UK due to 160 16% Brexit and a general slowdown in 140 151 148.4 14% Germany 120 12% 100 10% EBITA decreased to 8.8 MSEK (9.6), 80 8% 6.4% 6.0% corresponding to a margin
Slide 17: North America starting to recover
SEGMENTS North America starting to recover - 4% MSEK Net sales growth 200 20% Net sales continued decreasing by 4% 180 18% to 59 MSEK (61.4) 160 16% – in USD revenue fell by 9% 140 14% However, sales started to pick up in the 120 12% end of the quarter and the acquisition of 100 9.4% 10% Altus-PCB h
Slide 18: Continued strong performance in East
SEGMENTS Continued strong performance in East 2% MSEK Net sales growth 200 20% Net sales increased 2% to 89.7 180 18% MSEK compared to last year (87.7) 160 16% Improved EBITA to 12.1 MSEK (9.3), 140 13.4% 14% corresponding to a margin of 13.4% 120 10.6% 12% (10.6) 100 87.7 89.7 10% 80 8% 60 6% 40 4%
Slide 19: KPIs
KPIs Dec 2019 Dec 2018 ROE, % 39.8 51.9 Net debt/Adj. EBITDA 0.2 -0.1 Equity/Asset ratio, % 39.9 41.1 Net working capital, MSEK 125.8 135.3 NCAB GROUP © | Q4 2019 PRESENTATION
Slide 20: Summary of the Q4 report
Summary of the Q4 report Continued weaker top line growth, both in Net sales and Order intake Gross margin increasing EBITA and EBITA margin stronger due to cost savings Nordic growing well thanks to Norway and the acquisition in Denmark North America is slowly recovering with better margins Positiv
Slide 21: Delivering on our strategic plan
Delivering on our strategic plan Consolidate market Expand geographically Deeper collaboration with existing customers Increase market share in Europe, USA and East NCAB GROUP © | Q4 2019 PRESENTATION
Slide 22: Financial targets, medium-term
Financial targets, medium-term Dividend expected to Annual average growth Average adjusted EBITA Net debt/adjusted correspond to at least before acquisitions of margin of EBITDA less than 8% 8% 2x 50% of net profit 2019 7% 9% 0.2 62% NCAB GROUP © | Q4 2019 PRESENTATION
Slide 23: Q&A
Q&A
Slide 24: Next quarterly report
Next quarterly report: January-March, 2020 May 8, 2020 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q4 2019 PRESENTATION
Slide 25: Thank you!
Thank you! NCAB GROUP © | Q4 2019 PRESENTATION