Ncab Group Ab · OMXSTO:NCAB

Ncab Group Ab — Q3 2021 Earnings Presentation

26 slides from Ncab Group Ab's earnings presentation, Nov 12, 2021

  1. Slide 1: Growing from a higher level

    Growing from a higher level NCAB Q3 2021 November 12 NCAB GROUP © Q3 2021 presentation 1

  2. Slide 2: Today's presenters

    Today’s presenters PETER KRUK CEO ANDERS FORSÉN CFO NCAB GROUP © Q3 2021 presentation 2

  3. Slide 3: Agenda

    Agenda Continued growth and strong Q3 result 2 new acquisitions New credit facility adding 750 MSEK for further acquisitions Invitation to extraordinary general meeting: Proposed extra dividend 10 SEK per share Proposed split 10:1 Financial targets will be reviewed in 2022 NCAB GROUP © Q3 2021 prese

  4. Slide 4: Summary of Q3 2021 for NCAB

    Summary of Q3 2021 for NCAB Another strong quarter. Continued high order intake, 935 MSEK up 86% in USD. For comparable units in USD the increase was 68% Stable lead-times, normalized order book Strengthened market positions due to our business model being present in Asia Our acquired companies all

  5. Slide 5: 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 Expect to have net sales of approx. 370 MSEK in 2021, and an EBITA of approx. 45 MSEK Purchase price was

  6. Slide 6: Acquisition of RedBoard Circuits - USA

    Acquisition of RedBoard Circuits - USA Acquired 1st of September Phoenix, Arizona 5 MUSD in revenue 5 employees HMLV customers Expected synergies in purchase and supplier base NCAB GROUP © Q3 2021 presentation 6

  7. Slide 7: Financing and Board proposals

    Financing and Board proposals New financing of SEK 750 million in place for future acquisitions Proposed extra dividend of SEK 10 per share Proposed share split 10:1 Extra General Meeting planned for December, 15 NCAB GROUP © Q3 2021 presentation 7

  8. Slide 8: Mission and vision: PCBs for demanding customers

    16 45 512 27 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 2021 presentation 8

  9. Slide 9: PCBs for making PCB-As

    THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © Q3 2021 presentation 9

  10. Slide 10: 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 Altus Macedonia Norway China Germany UK USA Malaysia Sweden Finland Denmark Russia Spain Poland France Italy Benelux CAGR: 16.8 % 2758 1617 374 2008

  11. Slide 11: The pipeline is still there

    The pipeline is still there 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 Elmatica, Norway sas – electronics, Germany Recent PreventPCB, Italy BBG, US Flatfi

  12. Slide 12: The third quarter in numbers

    The third quarter in numbers Increasing growth as earlier order intake converts to sales Q3 864 100 123.2 14.3% 2021 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs +61% +66% +146% +5.0 Q3 2020 NCAB GROUP © Q3 2021 presentation 12

  13. Slide 13: Year to date in numbers

    Year to date in numbers Growing from a higher level YTD 2,243 264 285.1 12.7% 2021 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs +40% +55% +106% +4.0 YTD 2020 NCAB GROUP © Q3 2021 presentation 13

  14. Slide 14: Strong growth and increased margins in the quarter

    Strong growth and increased margins in the quarter Sales growth in USD EBITA margin NORDIC +58% 18.6% +96% incl acquisitions EUROPE +58% excl 13.1% +28% incl acquisitions NORTH AMERICA +24% excl 10.9% EAST +48% 16.7% NCAB GROUP © Q3 2021 presentation 14

  15. Slide 15: Good underlying market growth expected in coming years

    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 Consumer PCs

  16. Slide 16: Increased top-line growth with stable margins

    Increased top-line growth with stable margins 2 758 2 115 1 781 1 617 1 400 1 226 31,3% 31,7% 30,3% 30,2% 30,3% 30,8% 2016 2017 2018 2019 2020 2021 Q3 LTM NCAB GROUP © Q3 2021 presentation 16

  17. Slide 17: Strong organic growth further boosted by acquisitions

    Strong organic growth further boosted by acquisitions MSEK Order intake increased in USD 86%, 1000 in SEK by 83% to 935 MSEK, for 863.6 900 comparable units, order intake 800 increased 68% in USD, 65% in SEK 700 Growth in net sales in USD 66%, in 600 536.7 SEK 61%, for comparable units in 500 USD gr

  18. Slide 18: Strong result and EBITA margin in the quarter

    Strong result and EBITA margin in the quarter MSEK 14.3% 120 14% 123.2 EBITA increased to 123.2 MSEK 100 12% (50.1) EBITA margin of 14.3% (9.3) 9.3% 10% 80 Earnings per share was 4.86 SEK (1.68) 8% 60 Temporary increase of working 6% 40 50.1 capital due to freight issues (longer 4% lead times and hi

  19. Slide 19: Nordic

    SEGMENTS Nordic MSEK 18.6% EBITA margin 200 20% Order intake increased by 76% in 18.6% 180 18% USD and 73% in SEK 160 14.4% 16% Net sales grew by 58% in USD and in 140 14% SEK by 54% to 170.5 MSEK (110.5) 170.5 120 134 12% All countries were strong and 100 10% especially so in Norway 80 110.5 8% EBI

  20. Slide 20: Europe

    SEGMENTS Europe MSEK 58% 421.9 Net sales 16% Strong growth in all markets, especially growth USD, 400 Germany, Netherlands and UK comparable units 14% 13.1% 350 Order intake increased by 132% in USD 12% and with 126% in SEK to 505 MSEK, 300 comparable units 92% in USD 10% 250 220.8 Net sales increas

  21. Slide 21: North America

    SEGMENTS North America 24% Net sales growth USD, Order intake increased by 42% in USD MSEK comparable units and by 39% in SEK to 160 (115), 150.5 140 20% comparable units 39% in USD 121.9 18% 120 Net sales increased by 28% in USD and 10.9% 16% with 23% in SEK to 150.5 MSEK (121.9), 100 14% comparabl

  22. Slide 22: East

    SEGMENTS East MSEK 48% Net sales Order intake increased 31% in USD, and growth USD 20% with 34% in SEK to 102 MSEK 140 16.7% 18% Net sales increased by 48% in USD and 120 16% with 45% in SEK to 120.6 MSEK (83.4) 120.6 14% 100 11.2% Growth in China while Russia was 12% weaker due to many customers su

  23. Slide 23: KPIs

    KPIs Sept 2021 Sept 2020 ROE % LTM 31.0 24.3 Net debt/EBITDA 0.6 -0.2 18.9% 18.9% Equity/Asset ratio % 43.1 46.7 Net working capital, MSEK 367 167 Net working capital/Net sales LTM % 11.1 8.1 Available liquidity, MSEK 320 633 NCAB GROUP © Q3 2021 presentation 23

  24. 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 GROUP © Q3 2021 presentation 24

  25. Slide 25: Q&A

    Q&A 25

  26. Slide 26: Next quarterly report

    Next quarterly report: Year-end report: 17 February, 2022 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © Q3 2021 presentation 26

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