Slide 1: Slow pace in Europe - NCAB Q3 Presentation
Slow pace in Europe NCAB Q3 PRESENTATION 5 November 2024 NCAB GROUP © | Q3 2024 presentation 1
Slide 2: Today's presenters
NCAB GROUP Q3 Today’s presenters PETER KRUK TIMOTHY BENJAMIN CEO CFO NCAB GROUP © | Q3 2024 presentation 2
Slide 3: 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 2024 presentation 3
Slide 4: Companies, markets, specialists, factories; mission and vision
19 45 607 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 © | Q3 2024 presentation 4
Slide 5: Customer integration
BUSINESS MODEL Customer integration Local presence IRL Production engineering PCB unique know-how Technical advice and customer education Process integration for Matching needs with efficiency optimum manufacturing location 5
Slide 6: Factory integration
BUSINESS MODEL Factory integration Local presence IRL Experienced team of 120+ specialists Preventive and reactive Regular full quality and quality assurance sustainability audits Development of Sourcing and qualification capabilities – quality of new partners & sustainability 6
Slide 7: Europe slow while North America and East grew
KEY TAKE AWAYS IN Q3 2024 Europe slow while North America and East grew Demand in Europe was still soft Weak general demand in Germany, has spread to neighbouring markets Nordics with mixed performance, benefitting from defence growth, but lower activity in green energy North America and East segmen
Slide 8: New acquisitions in the quarter
M &A New acquisitions in the quarter July 1, ICOM Industrial Components AG - Switzerland 40 MSEK 6 employees July 4, EPI Components Trade - Austria 35 MSEK 4 employees Sept 2, Print Production - Denmark 12 MSEK 3 employees Oct 10, DVS closing - Italy 230 MSEK 31 employees NCAB GROUP © | Q3 2024 pres
Slide 9: Q3 2024 in figures
Q3 2024 In figures Order intake decreased by 4% to 887 (924) MSEK In USD order intake flat vs 2023 Q3 Book to bill 0.99 Net Sales decreased by 11% to 898 (1,005) MSEK Organic growth -8% in USD 2023 Q3 revenue supported by legacy order book EBITA amounted to 118.5 MSEK, 13.2% EBITA-margin Gross Margi
Slide 10: EBITA margin affected by lower net sales
THE THIRD QUARTER IN NUMBERS EBITA margin affected by lower net sales Q3 898 86.2 118.5 13.2 % 2024 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -11% -7% -33% -4.3 pp Q3 2023 NCAB GROUP © | Q3 2024 presentation 10
Slide 11: Weaker top line partly from lower prices
Weaker top line partly from lower prices 38 36 31 32 32 30 30 31 Gross margin, % 4,458 Net sales, MSEK 4,088 3,662 3,220 2,115 1,617 1,781 1,400 2017 2018 2019 2020 2021 2022 2023 LTM Q3 2024 NCAB GROUP © | Q3 2024 presentation 11
Slide 12: Order intake and sales remained weak
ORDER INTAKE AND NET SALES Order intake and sales remained weak MSEK Order intake decreased by 4% to 887 and for 1,200 comparable units in USD decreased by 1% 1,100 1,005 1,000 924 900 887 898 Positive development in Nordics, North America 800 1,005 and East but weak demand Europe 700 600 Net sales
Slide 13: EBITA result remained at previous quarter level
EBITA RESULT EBITA result remained at previous quarter level EBITA decreased to 118.5 MSEK (176) MSEK % 17.5% 180 18 2023 positively impacted by 21.0 MSEK from 160 16 reversal of additional purchase consideration 140 13.2% 14 120 12 Lower revenue impacts EBITA 100 898 10 176 The EBITA margin decreas
Slide 14: Segments: Nordic
SEGMENTS Nordic Poland is from 2024 part of segment Nordic to MSEK % support customer needs 250 18.9% 20 Order intake increased by 9% to 229 MSEK (210) 200 Aerospace and defence perform well 13.0% 15 Green energy and construction sectors weak 150 898 10 Net sales amounted to 202 MSEK (223), 223 100
Slide 15: Segments: Europe
SEGMENTS Europe Order intake decreased by 14% to 421 MSEK MSEK % (490) 700 18 Net sales decreased by 20% to 435 MSEK (545) 15.1% 16 600 13.2% 14 German market remains weak and impacts 500 12 neighbouring markets 400 898 10 Positive development in commercial vehicles 300 8 545 and aerospace 435 6 200
Slide 16: Segments: North America
SEGMENTS North America Order intake increased by 5% to 185 MSEK (176) MSEK % 15.4% Net sales increased by 10% to 205 MSEK (186) 250 16 13.7% 14 Continued work to strengthen our organization 200 12 and to expand our external sales network 150 10 Leveraging our technical support capabilities 898 8 lea
Slide 17: Segments: East
SEGMENTS East Order intake increased 10% to 52 MSEK (48) MSEK % 100 21.1% 22 Market conditions in China remain challenging 90 20 but NCAB’s focus on high tech niches helps to 80 18 16 outperform the market 70 14 60 14.6% 898 12 Some positive signs in consumer confidence 50 10 40 has been noted as a
Slide 18: Strong finances support our growth
KPI:s Strong finances support our growth 2024 Q3 2023 Q3 ROE % 20.7 32.4 Net debt/EBITDA 1.1 0.9 Equity/Asset ratio % 41.3 40.5 Net working capital, MSEK 278 308 Net working capital/Net sales LTM % 7.5 6.9 Available liquidity, MSEK 1,481 962 NCAB GROUP © | Q3 2024 presentation 18
Slide 19: 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 EPI Components, Austria 2024 ICOM Indu
Slide 20: 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 21: Q&A
Q&A NCAB GROUP © | Q3 2024 presentation 21
Slide 22: Financial calendar 2025
Financial calendar 2025 Thursday, 13 February 2025 Q4 report Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q3 2024 presentation 22