Slide 1: Proud to present NCAB's fourth quarter
“Proud to present NCAB’s fourth quarter” Q4 2018 Presentation February 22, 2019 1
Slide 2: Today's presenters
Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q4 2018 2
Slide 3: Agenda
Agenda 1. Q4 2018 in short 2. NCAB – who we are and what we do 3. Financials 4. Key take-aways 5. Q&A NCAB GROUP © | Q4 2018 3
Slide 4: 1. Q4 2018 in short
1. Q4 2018 in short NCAB GROUP © | Q4 2018 4
Slide 5: The quarter in numbers
The quarter in numbers Strong sales growth – despite normally weak season Q4 406.7 Revenue, MSEK 45.1 Revenue, MUSD 36.0 Adj. EBITA, MSEK 8.9% Adj. EBITA margin 2018 Change vs +24% +14% +192% +5.1 Q4-17 Percentage points NCAB GROUP © | Q4 2018 5
Slide 6: The full year in numbers
The full year in numbers Significantly stronger result due to higher sales and gross margin 2018 1,617.0 186.0 143.8 8.9% Revenue, MSEK Revenue, MUSD Adj. EBITA, MSEK Adj. EBITA margin Change vs +15% +14% +26% +0.8 2017 Percentage points NCAB GROUP © | Q4 2018 6
Slide 7: Our segments are all growing – but are in different stages
Our segments are all growing – but are in different stages Q4 2018 Revenue Adj. EBITA East East 22% Nordic 26% 24% Nordic 43% USA USA 8% 15% Europe 37% Europe 25% NCAB GROUP © | Q4 2018 7
Slide 8: Events and highlights during and after Q4
Events and highlights during and after Q4 Starting up business in Malaysia and the Netherlands Acquisition of Multiprint A/S in Denmark – strengthening position Proposed dividend of 75.8 MSEK, corresponding to 4.50 SEK per share NCAB GROUP © | Q4 2018 8
Slide 9: Acquisition of Multiprint A/S in Denmark
MULTIPRINT Acquisition of Multiprint A/S in Denmark • Good add-on to NCAB’s Danish business • Makes NCAB a clear market leader in Denmark • Adds approximately 60 MSEK in annual revenue • Profitable business – EPS accretive first year • Matching cultures and business models NCAB GROUP © | Q4 2018 9
Slide 10: 2. NCAB – who we are and what we do
2. NCAB – who we are and what we do NCAB GROUP © | Q4 2018 10
Slide 11: PCBs for making PCB-As
THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q4 2018 11
Slide 12: PCBs for demanding customers – mission and vision
17 45 378 22 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 2018 12
Slide 13: Why are printed circuit boards critical?
THE COST OF A Why are printed circuit boards critical? FAULTY PCB PCB Production Assembly End product 100% THE RATIO OF THE PCB COST VALUE TO THE PRODUCTION PHASE 7% 0.5-2% PRODUCTION PHASE NCAB GROUP © | Q4 2018 13
Slide 14: Why NCAB has a role to fill
Why NCAB has a role to fill 2000 China 2016 8% Europe and Americas 9% Europe and Americas 42% China 49% Rest of Asia 42% Rest of Asia 50% % of PCB production world wide % of PCB production world wide European/US factories market share down from 42% in 2000 to 9% in 2016 NCAB GROUP © | Q4 2018 14
Slide 15: Lower total cost for customers
Own staff NCAB own in the factories PCB specification Technical and Financial stability engineering support Purchasing power Considerable influence and 163* M EURO best possible terms Wide product range and responsibility for entire PLC 1,725 customers 22 main factories in 45 markets predominantly w
Slide 16: Our journey
PD Circuit M-Wave UAE Multiprint Our journey 2012 2014 2015 2019 1993–2003 2004–2011 2012– Finland Denmark Russia Spain Poland France Italy Benelux Sweden Macedonia Norway China Germany UK USA Malaysia CAGR: 15.8% Revenue development, LTM 1 617 1 400 MSEK 1 203 1 226 924 711 561 601 520 374 322 2008
Slide 17: A market leading position worldwide
A market leading position worldwide ~165 REVENUE 2017, MUSD ~160 ~150 ~125 ~100 ~40 ~40 The Integrated PCB Producer NCAB GROUP © | Q4 2018 17 The Integrated PCB Producer
Slide 18: 3. Financials
3. Financials NCAB GROUP © | Q4 2018 18
Slide 19: Continued top-line growth and stable gross margins
Continued top-line growth and stable gross margins 1,617 1,400 1,226 1,203 31.3% 30.3% 30.2% 27.4% 2015 2016 2017 2018 Revenue, MSEK Gross margin, % NCAB GROUP © | Q4 2018 19
Slide 20: Strong revenue growth
Strong revenue growth MSEK 450 406,7 400 • Strong growth and order intake in 350 327,3 most segments together with tailwind in currencies 300 • Revenue increased by 24% in SEK, 250 and by 14% in USD 200 • Order intake increased by 12% in 150 SEK, and by 4% in USD 100 • Continued strong demand in all
Slide 21: Profitability strengthened
Profitability strengthened MSEK 45 42,2 20% 40 18% • Adj. EBITA increased by 192%, 36,0 reached 36.0 MSEK (12.4) 33,5 16% 35 32,0 14% • Adjusted EBITA margin of 8.9% (3.8) 30 12% 25 • Stronger result due to higher gross 8,9% 10% margin and slower increase in costs 20 8% 15 12,4 • Earnings per share
Slide 22: Nordic
Nordic 16% MSEK 160 20% EBITA margin 18% • Very strong growth – revenue 140 16,1% increased by 21.1% to 103.7 MSEK 16% 120 (85.7) 103,7 14% 100 12% • Good performance in Norway and 85,7 Denmark – together with tailwinds in 80 10% currency 8% 60 • EBITA increased 50.5% to 16.7 6% 40 MSEK (11.1) due t
Slide 23: Europe
Europe 31% MSEK 180 10% Revenue growth 160 151,0 9% • Strong trend continues – revenue growth of 30.5% to 151.0 MSEK 140 8% (115.7) 115,7 7% 120 • Strong development in Germany 6,4% 6% 100 and in the UK. Italy very promising 5% 80 • Expanding into Benelux region 4% 60 3% • EBITA increased to 9.6 MSE
Slide 24: USA
USA 2% MSEK 160 7% Revenue growth • Low growth of 2.2% to 61.4 140 6% MSEK (60.1) – in USD revenue fell by 5,4% 120 9%. Shift from low tech to high tech 5% continues 100 4% • Trade tariffs of 10% effective from 80 September – invoiced to customers 60,1 61,4 3% 60 • Too early to estimate consequences
Slide 25: East
East 35% MSEK 160 16% Revenue growth • Strong revenue growth of 35% to 140 14% 87.7 MSEK (65.0) 120 12% • Strongest development in China – 10,6% 100 10% from new and existing customers 87,7 80 8% • Setting up business in Malaysia – 65,0 emerging market with favourable 60 6% local demand 40 4% • Adju
Slide 26: KPIs
KPIs LTM Dec -18 Dec -17 ROE, % 51.9 30.3 Net debt/Adj. EBITDA -0.1 1.1 Equity/Asset ratio, % 41.0 19.2 Net working capital, MSEK 135.3 115.3 Suggested dividend, SEK per share 4.50 - NCAB GROUP © | Q4 2018 26
Slide 27: 4. Key take-aways
4. Key take-aways NCAB GROUP © | Q4 2018 27
Slide 28: Delivering on our strategic plan
Delivering on our strategic plan Multiprint in Denmark Malaysia Netherlands Increased profit Consolidate margin market Double digit Expand growth geographically Ensure profitability from existing customers Increase market share in Europe, USA and East 2017 Future NCAB GROUP © | Q4 2018 28
Slide 29: Financial targets, medium-term - and where 2018 came in
Financial targets, medium-term - and where 2018 came in Dividend expected to Average annual revenue Adjusted EBITA Net debt/adjusted correspond to at least growth of margin of EBITDA less than 8% 8% 2x 50% of net profit 4.50 2018 15% 8.9% -0.1x SEK per share suggested for 2018 NCAB GROUP © | Q4 2018
Slide 30: Q&A
Q&A NCAB GROUP © | Q4 2018 30
Slide 31: Next quarterly report / Investor contact
Next quarterly report: Q1 2019 May 14, 2019 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q4 2018 31