Slide 1: Progress in a brightening market
Strong resilience in a weak market Progress inNCAB a brightening Q4 report market February 15, 2024 NCAB PRESENTATION Avanza 22 May 2024 NCAB GROUP © | Avanza 22 maj 2024 1
Slide 2: Today's presenter
Today’s presenter PETER KRUK CEO NCAB GROUP © | Avanza 22 maj 2024 2
Slide 3: Business model: Integrated PCB production
BUSINESS MODEL Integrated PCB production NCAB GROUP © | Avanza 22 maj 2024 3
Slide 4: Mission and vision
18 45 606 32 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 © | Avanza 22 maj 2024 4
Slide 5: Everything needs a PCB and each PCB is unique
DIGITALIZATION, ELECTRIFICATION AND IOT... Everything needs a PCB and each PCB is unique NCAB GROUP © | Avanza 22 maj 2024 5
Slide 6: Our attractive niche – HMLV
OUR MARKET Our attractive MIX niche – HMLV (<USD 2,000 per order line) High-Mix Low-Volume (HMLV) > Higher product value > PCB:s 1-3 % of cost High > Higher quality demand > Harder to buy direct High-Volume (>USD 2,000 per order line) > Less price pressure Low VOLUME High Low NCAB GROUP © | Avanza 2
Slide 7: Reliable PCBs - because failure is not an option
TECHNOLOGY & QUALITY MANAGEMENT Reliable PCBs - because failure is not an option Local customer facing presence with PCB and application technology know-how secures optimised designs and a smooth process with shorter time to market Global Technology Council and Factory Management secures leadership
Slide 8: Industries we serve
Industries we serve NCAB GROUP © | Avanza 22 maj 2024 8
Slide 9: Diversified segment exposure and low dependency on large customers
Diversified segment exposure and low dependency on large customers INDUSTRY % of revenue 2023 CUSTOMERS Other Defense 5% Top 3 5% 11% Telecom Top 10 6% 24% Industrial 47 % Others Power 58% 11 % Top 50: Automotive 42% 12% Medical NCAB GROUP © | Avanza 22 maj 2024 9 15 %
Slide 10: A history of growth
MILLION SEK A history of growth 5 000 4 500 4 000 3 500 3,892 MSEK REVENUE 3 000 2 500 2 000 Ulf Anderssson AB 1 500 1 000 500 0 1 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 20 23 :q 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2
Slide 11: Solid financials and growth in orders
KEY TAKE AWAYS IN Q1 2024 Solid financials and growth in orders Market demand improving Order intake improves over previous quarters and all segments show positive trend except East Customer inventory adjustments appear to abate with pickup in recurring orders and book to bill >1 Continued good perf
Slide 12: Improved gross margin offset weaker top line
Improved gross margin offset weaker top line 5 000 4 458 4 500 4 088 3 892 4 000 3 220 3 500 3 000 37.1% 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 © | Avanza 2
Slide 13: Still weaker sales but uplift in order intake
NET SALES AND ORDER INTAKE Still weaker sales but uplift in order intake MSEK 1400 net sales order intake Net sales decreased by 17% to 951 MSEK in the quarter but increased compared to the fourth 1200 quarter 1000 1146 Order intake decreased by 6% to 970 and for 800 951 comparable units in USD decr
Slide 14: Strong finances support upcoming acquisitions
KPI:s Strong finances support upcoming acquisitions 2024 Q1 2023 Q1 ROE % 26.3 31.9 Net debt/EBITDA 0.7 0.6 Equity/Asset ratio % 43.7 40.9 Net working capital, MSEK 312 441 Net working capital/Net sales LTM % 6.4 8.0 Available liquidity, MSEK 1,104 1,147 NCAB GROUP © | Avanza 22 maj 2024 14
Slide 15: 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 Electronic Advanced Circuits, Spain Ph
Slide 16: Synergies
INTEGRATION PROGRESS Synergies Increased revenue Higher quality and better service Broader factory panel Factory management Improved gross margin Purchasing power Logistic solutions Improved profitability due to scale Improved working capital NCAB GROUP © | Avanza 22 maj 2024 16
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: Why NCAB? NCAB as investment
WHY NCAB? NCAB AS INVESTMENT Strong position in a niche market with stable growth Unique proposition to both customers and manufacturers Well diversified between different industries and customers Long track record of profitable growth with resilience to macroeconomic shifts Asset-light business mod