Ncab Group Ab · OMXSTO:NCAB

Ncab Group Ab — Q3 2018 Earnings Presentation

31 slides from Ncab Group Ab's earnings presentation, Nov 16, 2018

  1. Slide 1: Strong quarter for NCAB

    “Strong quarter for NCAB” Q3 2018 Presentation November 16, 2018 1

  2. Slide 2: Today's presenters

    Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q3 2018 2

  3. Slide 3: Agenda

    Agenda 1. Q3 2018 in short 2. NCAB – who we are and what we do 3. Financials 4. Key take-aways 5. Q&A NCAB GROUP © | Q3 2018 3

  4. Slide 4: 1. Q3 2018 in short

    1. Q3 2018 in short NCAB GROUP © | Q3 2018 4

  5. Slide 5: The quarter in numbers

    The quarter in numbers Q3 420 Revenue, MSEK 47 Revenue, MUSD 42 Adj. EBITA, MSEK 10.1% Adj. EBITA margin 2018 Change vs +23% +12% +37% +1.1 Q3-17 Percentage points NCAB GROUP © | Q3 2018 5

  6. Slide 6: January-September 2018 in numbers

    January-September 2018 in numbers Q1-Q3 2018 1,210 141 108 8.9% Revenue, MSEK Revenue, MUSD Adj. EBITA, MSEK Adj. EBITA margin Change vs +13% +14% +6% -0.6 2017 Percentage points NCAB GROUP © | Q3 2018 6

  7. Slide 7: Our segments

    Our segments Revenue EBITA East East 21% Nordic 21% Nordic 24% 34% Q3 USA USA 10% 2018 16% Europe 39% Europe 35% East Nordic East 19% 25% 23% Nordic Q1-Q3 USA 16% USA 43% 2018 7% Europe Europe 40% 27% NCAB GROUP © | Q3 2018 7

  8. Slide 8: Highlights during and after Q3

    Highlights during and after Q3 Strong growth and order intake in all segments Significantly stronger result Starting up business in Malaysia Seasonally weak Q4 sales and somewhat lower growth in order intake NCAB GROUP © | Q3 2018 8

  9. Slide 9: 2. NCAB in short

    2. NCAB in short NCAB GROUP © | Q3 2018 9

  10. Slide 10: PCBs for demanding customers, on time with zero defects

    15 45 367 18 companies markets specialists factories MISSION VISION PCBs for demanding customers, on The Number 1 PCB Producer time with zero defects and at the wherever we are lowest total cost NCAB GROUP © | Q3 2018 10

  11. Slide 11: 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 © | Q3 2018 11

  12. Slide 12: 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 © | Q3 2018 12

  13. Slide 13: Why our customers love us

    Why our customers love us 1,650 18 customers in main factories 45 markets predominantly worldwide located in China One-stop-shop for PCB needs Purchasing power Quality control, knowledge and support Lower total cost for customers NCAB GROUP © | Q3 2018 13

  14. Slide 14: Our journey

    Our journey 1993–2003 2004–2011 2012– FROM TRADER… ...TO FULL SERVICE SUPPLIER… … WITH WORLDWIDE PRESENCE Finland Denmark Russia Spain Poland France Italy Sweden Macedonia Norway China Germany UK USA CAGR: 16% Revenue development, LTM 1 538 1 400 MSEK 1 203 1 226 924 711 561 601 520 374 322 2008 200

  15. Slide 15: 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 © | Q3 2018 15 The Integrated PCB Producer

  16. Slide 16: Low customer concentration

    Low customer concentration % of revenue 2017 Top 2: ~11% Top 10: ~27% Others MSEK ~50% 1,400 Top 50: ~50% NCAB GROUP © | Q3 2018 16

  17. Slide 17: 3. Financials

    3. Financials NCAB GROUP © | Q3 2018 17

  18. Slide 18: Continued top-line growth and stable gross margins

    Continued top-line growth and stable gross margins 1,538 1,400 1,226 1,203 30,3% 30,2% 30,6% 27,4% 2015 2016 2017 2018, Q3 LTM Revenue, MSEK Gross margin, % NCAB GROUP © | Q3 2018 18

  19. Slide 19: Continued strong revenue

    Continued strong revenue MSEK 450 420.1 400 • Strong growth and order intake in all 342.7 segments together with tailwind in 350 currencies 300 • Revenue increased by 23% in SEK, 250 and 12% in USD 200 • Order intake increased by 21% in SEK, and by 9% in USD 150 100 • Continued strong demand in all

  20. Slide 20: Profitability strengthened

    Profitability strengthened MSEK 45 42.2 20% 40 18% • Adj. EBITA increased by 37%, reached 42.2 MSEK (30.9) 35 16% 30.9 14% • Adjusted EBITA margin of 10.1% 30 (9.0) 10% 12% 25 10% • Stronger result due to higher gross 20 margin and slower increase in costs 8% 15 6% • Earnings per share reached 1.93

  21. Slide 21: Nordic

    Nordic 15% MSEK 160 20% EBITA margin 18% 140 16% • Revenue increased by 17.6% to 120 14.7% 102.7 MSEK (87.3) 102.7 14% 100 87.3 12% • EBITA increased 68% to 14.8 MSEK 80 10% (8.9) due to higher sales, gross margin and tailwinds in currency 60 8% 6% • EBITA margin of 14.7% (10.2) 40 4% 20 2% 0 0% Q3

  22. Slide 22: Europe

    Europe +32% MSEK 180 166.3 20% Revenue growth 18% 160 • Revenue growth of 32% to 166.3 16% 140 MSEK 126.3 14% 120 • Strong development in Germany 12% and in the UK – Italy very promising 100 9.2% 10% 80 • New office in Stuttgart 8% 60 6% • EBITA increased by 42.3% to 15.2 40 MSEK (10.7), correspondi

  23. Slide 23: USA

    USA +8% MSEK 160 7% Revenue growth 6.4% • Stable growth of 8% to 67.9 140 6% MSEK (63.0) – in USD revenue fell by 120 2% 5% 100 • Trade tariffs of 10% with effect from 4% September – will be invoiced 80 67.9 customers 63.0 3% 60 • EBITA of 4.3 MSEK (3.8), 40 2% corresponding to a margin of 6.4% (6.1

  24. Slide 24: East

    East +30% MSEK 160 16% Revenue growth • Strong revenue growth of 30.1% to 140 14% 86.2 MSEK 120 12% • Strong development in China and 10.7% 100 10% in Russia – from existing as well as 86.2 from new customers 80 8% 66.3 60 6% • Setting up business in Malaysia – emerging market with favourable 40 4%

  25. Slide 25: Balance sheet KPIs

    Balance sheet KPIs 0.2 Net debt/Adj. EBITDA LTM Sep -18 Sep -17 2017 ROE, % 32.0 49.6 30.4 Net debt/Adj. EBITDA 0.2 1.4 1.1 Equity/Asset ratio, % 39.2 19.4 19.2 Net working capital, MSEK 148.7 137.2 115.3 NCAB GROUP © | Q3 2018 25

  26. Slide 26: 4. Key take-aways

    4. Key take-aways NCAB GROUP © | Q3 2018 26

  27. Slide 27: Key take-aways

    Key take-aways Strong sales in all segments with stronger results Expanding into Malaysia Seasonally weak Q4 and somewhat lower growth in order intake Confidence in our financial targets NCAB GROUP © | Q3 2018 27

  28. Slide 28: Strategic plan supporting continued growth

    Strategic plan supporting continued growth Consolidate market Expand geographically Ensure profitability from existing customers Increase market share in Europe, USA and East 2017 Future NCAB GROUP © | Q3 2018 28

  29. Slide 29: Financial targets, medium-term

    Financial targets, medium-term Dividend expected to Average annual organic revenue Adjusted EBITA Net debt/adjusted correspond to at least growth of margin of EBITDA less than 8% 8% 2x 50% of net profit NCAB GROUP © | Q3 2018 29

  30. Slide 30: Q&A

    Q&A NCAB GROUP © | Q3 2018 30

  31. Slide 31: Next quarterly report / Investor contact

    Next quarterly report: Full-year 2018 22 February, 2019 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com NCAB GROUP © | Q3 2018 31

NCAB Group — Q3 2018 Earnings Presentation on 6ix