Slide 1: Strong resilience in a weak market
Strong resilience in a weak market NCAB Q4 report February 15, 2024 NCAB GROUP © | Q4 2023 presentation 1
Slide 2: Today's presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q4 2023 presentation 2
Slide 3: Key take aways in Q4 2023: Resilience in a weak market
KEY TAKE AWAYS IN Q4 2023 Resilience in a weak market Markets remain weak in all regions Net sales and order intake impacted by continued inventory normalization as well as weak demand at customers Order intake stabilizing with Book-to-Bill close to 1 and signs of more activity in China and North Am
Slide 4: Q4 2023 in figures
Q4 2023 In figures Net Sales decreased by 14% to 879 (1,026) MSEK Organic growth -23% in SEK Order intake decreased by 9% to 873 (1,009) MSEK. Down 21% organic vs LY in SEK and USD Down 5% vs Q2 and Q3 Book-to-Bill at 0.99 EBITA amounted to 119 MSEK, a decrease by 16%. Strong EBITA margin of 13.5% (
Slide 5: 2023 in figures
2023 In figures Net Sales decreased by 8% to 4,088 (4,458) MSEK Organic growth -15% in SEK Order intake decreased by 11% to 3,751 (4,227) MSEK Organic growth -18% in SEK EBITA amounted to 647 MSEK, an increase by 3% Strong EBITA margin of 15.8% (14.2) Gross Margin at an improved level of 36.0% (32.2
Slide 6: Four acquisitions and one start up
ACQUISITIONS DURING 2023 Four acquisitions and one start up During the spring 3 companies were acquired BBC in Italy Phase 3 in California db electronic in Germany After the summer Electronic Advanced Circuits in Spain Start-up of subsidiary in Portugal In total close to 400 MSEK of yearly turnover
Slide 7: Mission and vision
17 45 603 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 © | Q4 2023 presentation 7
Slide 8: Everything needs a PCB and each PCB is unique
DIGITALIZATION, ELECTRIFICATION AND IOT... Everything needs a PCB and each PCB is unique NCAB GROUP © | Q4 2023 presentation 8
Slide 9: Industries we serve
Industries we serve NCAB GROUP © | Q4 2023 presentation 9
Slide 10: A history of Growth
MILLION SEK A history of Growth 5 000 4 500 4 000 4,088 3 500 MSEK REVENUE 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 23 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
Slide 11: The fourth quarter in numbers
THE FOURTH QUARTER IN NUMBERS A weak market in the quarter Q4 879 82 119 13.5 % 2023 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -14% -13% -16% -0.2 pp Q4 2022 NCAB GROUP © | Q4 2023 presentation 11
Slide 12: The full 2023 in numbers
THE FULL 2023 IN NUMBERS Strong result for the full year 4,088 385 647 15.8 % 2023 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -8% -13% 3% 1.6 pp 2022 NCAB GROUP © | Q4 2023 presentation 12
Slide 13: Improved gross margin offset weaker top line
Improved gross margin offset weaker top line 36.0% 31.7% 32.2% 31.3% 30.2% 30.3% 30.7% NCAB GROUP © | Q4 2023 presentation 13
Slide 14: Weak markets but order intake flattening out
NET SALES Weak markets but order intake flattening out MSEK 1400 net sales order intake Net sales decreased by 14% to 879 MSEK in the quarter and for comparable units in USD 1200 1,026 decreased by 28% 1000 879 Order intake decreased by 14% to 873 MSEK 800 and for comparable units in USD decreased b
Slide 15: Operating EBITA margin improving despite weak sales
EBITA RESULT Operating EBITA margin improving despite weak sales EBITA decreased by 16% in the quarter to 119 MSEK 18% MSEK (141) 180 16% 16013.7% 13.5% The EBITA margin decreased to 13.5% (13.7). 140 14% Gross margin increased to 38.2% (34.1). 120 141 12% 100 119 10% Gross profit amounted to 335 MS
Slide 16: Segments: Nordic
SEGMENTS Nordic 16% EBITA margin MSEK Some business moved to segment Europe Adjusted* order intake decreased by 19% to 188 300 MSEK and by 17% in USD 296 20% Net sales decreased to 200 MSEK (296), with 250 adjusted* net sales decreasing by 21% in SEK 15.8% and 20% in USD 15.3% 15% 200 253 Norway and
Slide 17: Segments: Europe
SEGMENTS Europe 13% EBITA margin Net sales decreased by 11% to 429 MSEK (484) MSEK 800 20% Adjusted* net sales for comparable units decreased by 24% in SEK and 23% in USD 700 18% 16% Order intake reached 445 MSEK (536) 600 13.1% 14% 526 Adjusted* order intake for comparable units 500 12% 484 11.0% d
Slide 18: Segments: North America
SEGMENTS North America 13% EBITA margin MSEK Order intake amounted to 190 MSEK (166) 20% 200 17.7% Adjusted* order intake for comparable units 18% decreased by 19% in SEK and 18% in USD 191 190 16% Net sales in level with prior year at 191 MSEK 150 13.3% 14% (191) 12% 10% Adjusted* net sales for com
Slide 19: Segments: East
SEGMENTS East 20% EBITA-marginal MSEK Market conditions in China remain muted but 100 with some signs of increasing activity 90 20% 21.0% 20.0% Sharp focus on niche applications 80 70 15% Order intake decreased to 49 MSEK (51), but 60 increasing vs Q2 and Q3 50 55 59 10% Net sales increased with 6%
Slide 20: Good progress in our pipeline
NCAB ACQUISITION PROCESS Good progress in our pipeline Focus on Europe, US and East Approx. 250 identified companies HMLV segment Example of criteria Right customer portfolio No own production Profitable company Shortlist ~ 50 target companies Electronic Advanced Circuits, Spain Phase 3 Technologies
Slide 21: Strong finances support upcoming acquisitions
KPI:s Strong finances support upcoming acquisitions 2023 2022 ROE % 31.9 42.4 Net debt/EBITDA 0.9 0.8 Equity/Asset ratio % 41.5 39.3 Net working capital, MSEK 288 473 Net working capital/Net sales LTM % 5.4 8.8 Available liquidity, MSEK 994 1033 NCAB GROUP © | Q4 2023 presentation 21
Slide 22: Our sustainability work continues
Our sustainability work continues NCAB GROUP © | Q4 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: This is where we are aiming
FINANCIAL TARGETS This is where we are aiming Net sales (MSEK) EBITA (MSEK) Distribute cash Net debt/adjusted 8,000 EBITDA less than 1,000 Available in 2026 in 2026 2x Approx. 50% of net profit 24
Slide 25: Questions?
Questions? NCAB GROUP © | Q4 2023 presentation 25
Slide 26: Financial calendar 2024
Financial calendar 2024 Wednesday, 10 April Annual Report 2023 Thursday, 25 April Q1 Report 2024 Wednesday, 8 May AGM Tuesday, 23 July Q2 report Tuesday, 5 November Q3 report Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q4 2023 presentation 26