Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Q2 2023 Earnings Presentation
23 slides from Ncab Group Ab's earnings presentation, Jul 21, 2023
Slide 1: Stronger result in a softer market
Stronger result in a softer market NCAB Q2 report July 21, 2023 NCAB GROUP © | Q2 2023 presentation 1
Slide 2: Today's presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q2 2023 presentation 2
Slide 3: Key take aways in Q2 2023
KEY TAKE AWAYS IN Q2 2023 Stronger margins despite softer market Markets generally weaker in all regions Net sales and order intake decreasing mainly because of lower prices and inventory normalization Nordic and Europe regions slightly stronger EV charging markets and Aerospace & Defence perform we
Slide 4: Q2 2023 in figures
Q2 2023 In figures Net Sales decreased by 6% to 1,057 (1,122) MSEK. Orderbook from 2022 continued to support net sales. Organic growth -14% in SEK. Order intake decreased by 11% to 924 (1,036) MSEK. Organic growth -19% in SEK. EBITA amounted to 168.2 MSEK, an increase by 5% Strong EBITA-margin of 15
Slide 5: Two new acquisitions focusing on quick turns
ACQUISITIONS OF DB ELECTRONIC AND PHASE 3 TECHNOLOGIES ANNOUNCED IN EARLY MAY Two new acquisitions focusing on ”quick turns” DACH and Silicon valley – two key markets Complements our existing business well Quick turns is a profitable and exciting niche Prototypes and quick turns first step for new c
Slide 6: Mission and vision
16 45 614 31 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 © | Q2 2023 presentation 6
Slide 7: Business model: Integrated PCB production
BUSINESS MODEL Integrated PCB production NCAB GROUP © | Q2 2023 presentation 7
Slide 8: Our attractive niche – HMLV
OUR MARKET Our attractive niche – HMLV MIX (<USD 2,000 per order line) High-Mix Low-Volume (HMLV) > Higher product value > Higher quality demand High > Harder to buy direct > Less price pressure High-Volume (>USD 2,000 per order line) Low VOLUME High Low NCAB GROUP © | Q2 2023 presentation 8 (>50 sq
Slide 9: Our growth journey
THIS IS NCAB Our growth journey IPO 3220 Ulf Anderssson AB 1993 2007 2012 2018 Sweden Macedonia Norway China Germany UK USA Italy Benelux Spain Poland France Finland Denmark Malaysia CAGR: 21 % CAGR: 25 % 4398 MSEK 1617 MSEK 711 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 LTM NCAB GROU
Slide 10: Performing despite weaker market in the quarter
THE SECOND QUARTER IN NUMBERS Performing despite weaker market in the quarter Q2 1,057 101 168 15.9 % 2023 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -6% -12% +5% +1.6 pp Q2 2022 NCAB GROUP © | Q2 2023 presentation 10
Slide 11: Record gross margin offset weaker top line
Record gross margin offset weaker top line 34.3% 31.7% 32.2% 31.3% 30.2% 30.3% 30.7% 2017 2018 2019 2020 2021 2022 2023 Q2 LTM NCAB GROUP © | Q2 2023 presentation 11
Slide 12: Softer markets impact top line
NET SALES Softer markets impact top line MSEK Net sales amounted to 1,057 MSEK, for 1400 comparable units in USD -12%. 1,122 1200 1,057 Order intake decreased in SEK by 11% to 924 1000 MSEK. 800 Book to bill 87%. 600 For comparable units orders decreased 24% in USD, and with 19% in SEK. 400 Market p
Slide 13: Stronger profitability despite lower top line
EBITA RESULT Stronger profitability despite lower top line EBITA increased by 5% to 168 MSEK (160). MSEK 15.9% Adjusted for transaction costs and IT-platforms 180 16% 14.3% EBITA reached 186 MSEK. 160 14% 140 160 168 The EBITA margin increased to 15.9% (14.3). 12% 120 Adjusted margin as above 17.7%.
Slide 14: Nordic
SEGMENTS Nordic 22% EBITA margin MSEK Some business moved to segment Europe. 22.0% Adjusted* order intake decreased by 15% to 242 300 300 MSEK and by 22% in USD. 19.9% 20% Net sales decreased to 207 MSEK (300) 250 261 Adjusted* net sales for comparable units decreased by 10% in SEK and -17% in USD.
Slide 15: Europe
SEGMENTS Europe 38% EBITA growth MSEK Net sales increased to 611 MSEK (551) driven by 800 20% acquisitions and transferred business from Nordic 18% 700 Adjusted* net sales for comparable units 622 15.4% 16% decreased by 11% in SEK and -17% in USD. 600 14% 500 Order intake 513 MSEK (480). Adjusted* o
Slide 16: North America
SEGMENTS North America 17% EBITA margin MSEK US EMS customers adapting to shorter lead 20% times and reducing inventories. 200 17.3% 18% Order intake decreased by 14% to 163 MSEK. 205 16% Adjusted* order intake decreased by 30% to 242 150 183 14% MSEK and by 34% in USD. 14.8% 12% Net sales decreased
Slide 17: East
SEGMENTS East 19% EBITA-marginal MSEK Lower customer activities than expected, after 100 China opened up. 90 20% 19.2% Manufacturing still on low levels. 80 18.9% 82 70 15% Order intake decreased to 43 MSEK (60). 60 Net sales decreased with 28 % to 56 MSEK 50 67 56 10% (67) but decreased with 31% in
Slide 18: Good progress in our pipeline
NCAB ACQUISITION PROCESS Good progress in our pipeline Focus on Europe Approx. 200 identified companies and US markets HMLV segment Example of criteria Right customer portfolio No own production Profitable company 44 target companies Shortlist Phase 3 Technologies, USA db electronic, Germany 2022 &
Slide 19: Available liquidity useful for more acquisitions
KPI:s Available liquidity useful for more acquisitions June 2023 June 2022 ROE % 39.4 44.6 Net debt/EBITDA 1.2 1.6 Equity/Asset ratio % 37.8 30.6 Net working capital, MSEK 419 534 Net working capital/Net sales LTM % 7.9 10.7 Available liquidity, MSEK 743 735 NCAB GROUP © | Q2 2023 presentation 19
Slide 20: Financial targets mid term
FINANCIAL TARGETS MID TERM This is where we are aiming Net sales (MSEK) EBITA (MSEK) Distribute cash Net debt/adjusted EBITDA less than 8,000 1,000 2x Available Approx. 50% of net profit in 2026 in 2026 NCAB GROUP © | Q2 2023 presentation 20
Slide 21: We continue to deliver on our strategic plan!
NCAB STRATEGY SINCE 2018 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 © | Q2 2023 presentation 21
Slide 22: Questions?
Questions? NCAB GROUP © | Q2 2023 presentation 22
Slide 23: Financial calendar 2023
Financial calendar 2023 SEPT 4 CAPITAL MARKETS DAY NOV 7 THIRD QUARTER REPORT Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q2 2023 presentation 23