Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Q2 2018 Earnings Presentation
25 slides from Ncab Group Ab's earnings presentation, Aug 16, 2018
Slide 1: Continued good growth for NCAB
“Continued good growth for NCAB” Q2 2018 Presentation, August 16th 2018 1
Slide 2: Today's presenters
Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q2 2018 2
Slide 3: Agenda
Agenda 1 Q2 2018 in short 2 NCAB – who we are and what we do 3 Financials 4 Key take-aways 5 Q&A NCAB GROUP © | Q2 2018 3
Slide 4: The quarter in numbers
The quarter in numbers Q2 416 Revenue, Mkr 48 Revenue, MUSD 32 Adj. EBITA, Mkr 7,7% Adj. EBITA margin 2018 Change vs +11% +14% -7% -1.4 Q2-17 units NCAB GROUP © | Q2 2018 4
Slide 5: First half year in numbers
First half year in numbers H1 790 Revenue, Mkr 94 Revenue, MUSD 66 Adj. EBITA, Mkr 8,3% Adj. EBITA margin 2018 Change vs +8% +15% -7% -1.4 H1 17 units NCAB GROUP © | Q2 2018 5
Slide 6: Highlights in the quarter
Highlights in the quarter Good growth and order intake in most segments Continued strong market in all regions - uncertain what effect potential trade barriers can have Result affected by growth initiatives and IPO USD now more favourable than Q1, EURO strong which is negative on costs No price incr
Slide 7: NCAB – who we are and what we do
NCAB – who we are and what we do NCAB GROUP © | Q2 2018
Slide 8: NCAB in short
NCAB in short PCBs for demanding customers, on time with zero defects and15at the lowest total cost 366 companies specialists 18 45 factories markets VISION MISSION The Number 1 PCB Producer PCBs for demanding customers, wherever we are on time with zero defects and at the lowest total cost
Slide 9: Why are printed circuit boards critical?
Why are printed circuit boards critical? Printed circuit board Printed circuit board End product 100% 7% 0,5-2% Low High • Printed circuit board share of product value1) NCAB GROUP © | Q2 2018 9
Slide 10: Why NCAB has a role to fill
Why NCAB has a role to fill 2000 2016 Europe and Americas 42% Rest of Asia China China 42% 8% 49% Europe and Rest of Asia Americas 50% 9% % of total printed circuit board production % of total printed circuit board production European/US factories market share down from 42% in 2000 to 9% in 2016 NCA
Slide 11: Why our customers love us..
Why our customers love us.. …A LARGE NUMBER …NEED NCAB TO …A LARGE NUMBER OF OF CUSTOMERS INTERACT WITH FACTORIES 1,650 customers in 45 18 main factories markets worldwide predominantly located in China Customer Factory The Integrated PCB Producer prescence prescence One-stop-shop for printed circui
Slide 12: Our journey
Our journey 1993-2003 2004-2011 2012 FROM TRADER… ..TO FULL SERVICE SUPPLIER… … WITH WORLDWIDE PRESCENCE Macedonia Norway China Poland UK Finland Denmark Russia Spain Germany France USA Italy Revenue development, LTM CAGR: 16% MSEK 1 460 1 400 1 203 1 226 924 711 561 601 520 374 322 2008 2009 2010 2
Slide 13: Financials
Financials NCAB GROUP © | Q2 2018
Slide 14: Revenue
Revenue Mkr 450 415,8 400 376,1 • Good growth and order intake in 350 most segments – we are increasing our market shares 300 250 • Revenue increased by 11% in SEK, and 14% in USD 200 150 • Order intake increased by 14% in SEK, and by 16% in USD 100 • Continued strong markets in all 50 regions 0 Q2
Slide 15: Profitability
Profitability Mkr 40,0 20% 35,0 34,2 18% 32,0 • Adjusted EBITA on stable levels, 16% 30,0 reached 32 Mkr (34,2) 14% 25,0 12% • Adjusted EBITA margin of 7,7% (9,1) 20,0 10% • Result affected by growth initiatives, 8% 8% IPO preparations and headwinds in 15,0 currency 6% 10,0 4% • Earnings per share r
Slide 16: Nordic
Nordic 18% Mkr 160 20% EBITA margin 17,5% 18% 140 16% • Revenue increased by 7,2% to 120 106,8 Mkr (99,6) 106,8 14% 99,6 100 12% • EBITA increased 53% to 18,7 Mkr 80 10% (12,2) due to higher sales and gross margin, corresponding to a margin 60 8% of 17,5% (12,3) 6% 40 4% 20 2% 0 0% Q2 2017 Q3 2017 Q
Slide 17: Europe
Europe +22% Mkr 160 164,0 20% Revenue growth 18% • Revenue growth of 22% to 164,0 140 134,1 16% Mkr 120 14% • Still strong development in 100 12% Germany and in the UK – Italy 10% better than plan 80 8% 60 • Profitability affected by focus on 6% 4,9% growth and recruitments 40 4% • EBITA increased b
Slide 18: USA
USA -2% Mkr 160 8% Revenue growth • Negative growth of 2% to 71,5 140 7% Mkr (72,8) 120 6% • Transition from low-tech to high-tech 100 5% 4,5% products 80 72,8 71,5 4% • Positive trend of number of new 60 3% customers 40 2% 20 1% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Revenue EBITA margin, % N
Slide 19: East
East +6% Mkr 160 16% Revenue growth • Revenue growth of 6% to 73,5 140 14% Mkr 120 12% • Strong development in China – 9,9% 100 10% stable performance and tough comparables in Russia 80 69,6 73,5 8% 60 6% • Adjusted EBITA margin reached 9,9% (10,2) 40 4% 20 2% 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2
Slide 20: IPO-related costs in Q2
IPO-related costs in Q2 SEK 9.2 million were charged to income statement Further SEK 20.0 million were charged to equity NCAB GROUP © | Q2 2018 20
Slide 21: Balance sheet KPIs
Balance sheet KPIs LTM June -18 June -17 2017 ROE, % 7,0 50,8 30,4 Net debt/Adj. EBITDA Solvency, % 0,6 36,2 1,2 28,0 1,1 19,2 0,6x Net debt/Adj. EBITDA Net working capital, Mkr 153,8 142,0 115,3 NCAB GROUP © | Q2 2018 21
Slide 22: Key take-aways
Key take-aways Solid growth and order intake in most segments while result affected by growth initiatives and IPO Continued strong market in all regions - uncertain what effect potential trade barriers can have USD now more favourable than Q1, EURO strong which is negative on costs NCAB GROUP © | Q2
Slide 23: Financial targets, medium-term
Financial targets, medium-term Dividend expected Average annual organic Adjusted EBITA Net debt/adjusted EBITDA to correspond to at revenue growth of margin of less than least 8% 8% 2x 50% of net profit NCAB GROUP © | Q2 2018 23
Slide 24: Q&A
Q&A
Slide 25: Next quarterly report / Investor contact
Next quarterly report: January-September 2018 16 November, 2018 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q2 2018