Slide 1: NCAB Q1 Presentation
Strong resilience in a weak market Progress NCAB in a brightening Q4 report market February 15, 2024 NCAB Q1 PRESENTATION 25 April 2024 NCAB GROUP © | Q1 2024 presentation 1
Slide 2: Today's presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q1 2024 presentation 2
Slide 3: Key take aways in Q1 2024
KEY TAKE AWAYS IN Q1 2024 Solid financials and growth in orders Market demand improving Order intake improves over previous quarters and all segments show positive trend except East Customer inventory adjustments appear to abate with pickup in recurring orders and book to bill >1 Continued good perf
Slide 4: Q1 2024 in figures
Q1 2024 In figures Net Sales decreased by 17% to 951 (1,146) MSEK Organic growth -24% in SEK and USD Net Sales increased 9% vs Q4 (879) Order intake decreased by 6% to 970 (1,030) MSEK Order Intake increased 11% vs Q4 (873) EBITA amounted to 143 MSEK, a decrease by 22% Strong EBITA margin of 15% (16
Slide 5: Mission and vision
18 45 607 32 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 © | Q1 2024 presentation 5
Slide 6: Everything needs a PCB and each PCB is unique
DIGITALIZATION, ELECTRIFICATION AND IOT... Everything needs a PCB and each PCB is unique NCAB GROUP © | Q1 2024 presentation 6
Slide 7: Our market: attractive niche HMLV
OUR MARKET Our attractive MIX niche – HMLV (<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 © | Q1 2024 presentation 7 (>50 sq
Slide 8: Reliable PCBs - because failure is not an option
TECHNOLOGY & QUALITY MANAGEMENT Reliable PCBs - because failure is not an option Local customer facing presence with PCB and application technology know-how secures optimised designs and a smooth process with shorter time to market Global Technology Council and Factory Management secures leadership
Slide 9: Industries we serve
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Slide 10: A history of growth
MILLION SEK A history of growth 5 000 4 500 4 000 3 500 3,892 MSEK REVENUE 3 000 2 500 2 000 Ulf Anderssson AB 1 500 1 000 500 0 1 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 20 23 :q 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 2
Slide 11: Solid EBITA margin despite lower net sales
THE FIRST QUARTER IN NUMBERS Solid EBITA margin despite lower net sales Q1 951 91 143 15.0 % 2024 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs -17% -17% -22% -1.0 pp Q1 2023 NCAB GROUP © | Q1 2024 presentation 11
Slide 12: Improved gross margin offset weaker top line
Improved gross margin offset weaker top line 5 000 4 458 4 500 4 088 3 892 4 000 3 220 3 500 3 000 37.1% 2 500 2 115 36.0% 1 781 2 000 1 617 1 400 1 500 31.7% 32,2% 31,3% 30.2% 30.3% 30.7% 1 000 500 0 2017 2018 2019 2020 2021 2022 2023 LTM 2024 Net sales, MSEK Gross margin, % NCAB GROUP © | Q1 2024
Slide 13: Still weaker sales but uplift in order intake
NET SALES AND ORDER INTAKE Still weaker sales but uplift in order intake MSEK 1400 net sales order intake Net sales decreased by 17% to 951 MSEK in the quarter but increased compared to the fourth 1200 quarter 1000 1146 Order intake decreased by 6% to 970 and for 800 951 comparable units in USD decr
Slide 14: Resilience in EBITA margin
EBITA RESULT Resilience in EBITA margin EBITA decreased by 22% in the quarter to 184 16.0% 18% 143 MSEK (184) 180 15.0% 16% 160 Overall cost level stable with previous quarters 14% 140 184 120 12% IT platform rollout continue according to plan 143 100 10% and budget 80 8% The EBITA margin decreased
Slide 15: Segments: Nordic
SEGMENTS Nordic 19% EBITA margin Poland is from 2024 part of segment Nordic to support customer needs 25% 300 20.7% Order intake decreased by 11% to 234 MSEK and 250 20% by 11% in USD 19.2% Double digit growth vs Q3 & Q4 200 15% 286 216 Aerospace & Defence perform well 150 10% Net sales amounted to
Slide 16: Segments: Europe
SEGMENTS Europe 15% EBITA margin Net sales decreased by 23% to 503 MSEK (650) MSEK 800 16% Net sales for comparable units decreased by 27% in SEK and 26% in USD 700 14.9% 15.2% 14% Order intake reached 488 MSEK (535) 600 12% Order intake for comparable units decreased 500 10% 650 503 with 13% in SEK
Slide 17: Segments: North America
SEGMENTS North America 13% EBITA margin MSEK Order intake amounted to 199 MSEK (170) 20% 200 Order intake for comparable units decreased 18% by 17% in both SEK and USD 16.5% 191 16% Order intake continue growth trend from Q3 and 150 13.0% 14% 159 Q4 in more positive market conditions 12% 10% Net sal
Slide 18: Segments: East
SEGMENTS East 15% EBITA-marginal MSEK Market conditions in China remain challenging but 100 increasing customer activity level 20% 90 Book to bill at 1.18 80 17.1% 70 Order intake decreased to 48 MSEK (62) 15% 15.1% 60 Net sales decreased to 41 MSEK (52) 50 52 10% Extended closures around Chinese Ne
Slide 19: Strong finances support upcoming acquisitions
KPI:s Strong finances support upcoming acquisitions 2024 Q1 2023 Q1 ROE % 26.3 31.9 Net debt/EBITDA 0.7 0.6 Equity/Asset ratio % 43.7 40.9 Net working capital, MSEK 312 441 Net working capital/Net sales LTM % 6.4 8.0 Available liquidity, MSEK 1,104 1,147 NCAB GROUP © | Q1 2024 presentation 19
Slide 20: Good progress in our pipeline
NCAB ACQUISITION PROCESS Good progress in our pipeline Focus on Europe, US and East Approx. 300 identified companies HMLV segment Example of criteria Right customer portfolio No own production Profitable company Shortlist ~ 50 target companies Cumatrix, Belgium Electronic Advanced Circuits, Spain Ph
Slide 21: A clear strategy for high-pace profitable growth
A clear strategy for high-pace profitable growth! GEOGRAPHICAL EXPANSION MARKET CONSOLIDATION Expand geographically to new markets using Consolidate market and explore economies of M&A to accelerate process scale for cost and capability advantages 100% FOCUS ON PCBS INCREASE MARKET SHARES Maintain 1