Slide 1: A solid quarter ends a strong year
A solid quarter ends a strong year Feb, 17 2023 NCAB GROUP © | Q4 2022 presentation 1
Slide 2: Today's presenters
Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q4 2022 presentation 2
Slide 3: A stable and profitable fourth quarter for NCAB
KEY TAKE AWAYS IN Q4 2022 A stable and profitable fourth quarter for NCAB Continued solid customer demand Continued growth despite 2021 comparables Some temporary softness in order intake Improving margins and profitability Improvements in all regions East and North America stand out performance Str
Slide 4: Q4 2022 for NCAB
SUMMARY IN FIGURES Q4 2022 for NCAB • A stable quarter with Net Sales of 1,026 MSEK with growth of 5%. Organic growth of 2%. • Order intake stable at 1,009 MSEK, 5% below LY in SEK. • Book to bill 98%. • EBITA amounted to 141 MSEK in the quarter, an increase of 17%. • EBITA margin was 13.7 % (12.4).
Slide 5: Acquisition of BBC in Italy
NOVEMBER 24, 2022 Acquisition of BBC in Italy Bare Board Consultants, founded in 1990, serves customers in Italy. Net sales of SEK 90 million in 2022 with an EBITA of SEK 9 million. The price paid was 5.6 m Euro. The company provides customers with PCB-solutions in the HMLV (High-Mix- Low-Volume) se
Slide 6: Another record year for NCAB
FULL YEAR 2022 Another record year for NCAB • Net Sales amounted to 4,458 MSEK a growth of 38% in SEK and 17% in USD. Organic growth of 26% in SEK and 6% in USD. • Order intake stable at 4,227 MSEK, an increase of 5% in SEK. For comparable units in USD, it was a decrease of 20%. • Our acquired compa
Slide 7: PCBs for making PCB-As
THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q4 2022 presentation 7
Slide 8: Our sustainability focus is attracting customers
SUSTAINABILITY Our sustainability focus is attracting customers Sustainability Choosing the audits right factories biannual, at least 2 Sourcing process persons 2-3 days Quality audits Code of Conduct Yearly 1600 FACTORIES Being on site California everyday Prop 65 PQE and QC TSCA NCAB GROUP © | Q4 2
Slide 9: Diversified industry segment exposure and low dependency on large customers
Diversified Industry segment exposure and low dependency on large customers INDUSTRY % of revenue 2022 CUSTOMERS Other: ~13% Top 2: ~11% Power: Industrial: Top 10: ~8% Others ~26% ~47% ~56% Telecom: ~6% Top 50: Medical: ~44% ~15% Automotive: ~11% NCAB GROUP © | Q4 2022 presentation 9
Slide 10: Our growth journey accelerates
THIS IS NCAB Our growth journey accelerates 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: 23 % CAGR: 28 % 4458 MSEK 1617 711 MSEK 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 NCAB GROU
Slide 11: A profitable and stable quarter
THE FOURTH QUARTER IN NUMBERS A profitable and stable quarter Q4 1,026 94 141 13.7 % 2022 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs +5% -15% +17% +1.3pp Q4 2021 NCAB GROUP © | Q4 2022 presentation 11
Slide 12: Strong growth in many aspects
FULL YEAR 2022 Strong growth in many aspects 2022 4,458 440 631 14.2 % Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin 2021 +38% +17% +55% +1.6pp NCAB GROUP © | Q4 2022 presentation 12
Slide 13: Increased top-line growth with higher gross margins
Increased top-line growth with higher gross margins 31,7% 32,2% 31,3% 30,2% 30,3% 30,7% 2017 2018 2019 2020 2021 2022 NCAB GROUP © | Q4 2022 presentation 13
Slide 14: Growth from acquisitions
NET SALES Growth from acquisitions Growth in net sales in SEK 5% to 1,026, for MSEK comparable units in USD -16%. 1400 Order intake decreased in SEK by 5% to 1,009 MSEK. 1200 1,026 Book to bill 98%. 1000 977 For comparable units orders decreased 24% in 800 USD, and with 7% in SEK. 600 2021 saw a sur
Slide 15: Profitability continue to increase
EBITA RESULT Profitability continue to increase MSEK EBITA increased by 17 % to 141 MSEK (121) in Q4. 180 16% 13.7% 15.7% 160 14% The EBITA margin increased to 13.7% 12.4% 140 (12.4). 141 12% 120 Reduced working capital and increased 121 10% 100 result generated strong cash flow at 189 8% MSEK (20).
Slide 16: Nordic
SEGMENTS Nordic MSEK 15% EBITA margin 20% Order intake was flat but decreased by 300 20% in USD. 296 18% Net sales increased by 10% in SEK to 296 250 269 16% (269) MSEK but decreased by 10% in 15.2% 15.3% 14% USD. 200 12% Good development in Denmark and 150 10% Norway. 8% EBITA increased to 45.2 MSE
Slide 17: Europe
SEGMENTS Europe MSEK 36% EBITA growth Strong net sales growth in all markets, especially Germany, Netherlands and UK. 600 20% 18% Net sales increased by 19% to 484 MSEK 484 500 (407) and with 6% in USD, comparable units 16% decreased 15% in USD. 407 14% 400 Order intake increased by 5% to 536 MSEK 1
Slide 18: North America
SEGMENTS North America 18% EBITA margin MSEK Order intake decreased by 13% and with 20% 30% in USD 200 191 187 18% Net sales increased by 2% to 191 MSEK 17.7% 16% (187), but decreased with 17% in USD. 150 14% EBITA increased to with 55% to 33.9 MSEK 11.7% 12% (21.9) 10% 100 EBITA-margin increased to
Slide 19: East
SEGMENTS East -37% MSEK Adjusted Net sales Sales in Russia was stopped on February growth USD 28th and the company was sold on April 8th. 140 20% 21.0% For comparable units order intake 120 13.6% decreased by 13% to 51 MSEK, and with 113 15% 29% in USD. 100 Comparable units’ sales decreased by 22% 8
Slide 20: The pipeline continues to grow
NCAB ACQUISITION PROCESS The pipeline continues to grow Focus on Europe Approx. 200 identified companies and US markets HMLV segment Example of criteria Right customer portfolio No own production Profitable company 40 target companies Shortlist BBC, Italy KESTREL, UK META, Germany 2021 & 2022 Elmati
Slide 21: Our integration process creates synergies
THE NCAB INTEGRATION PROCESS Our integration process creates synergies Marketing IT Finance One brand Shared tools, – one company Economies of systems scale and platforms Operations Sales Factory and logistics Strong relationships Sustainability – customer contacts and visits People & Culture Acquir
Slide 22: Return on equity high despite strong solidity
KPI:s Return on equity high despite strong solidity 2022 2021 ROE % 42.4 38.7 Net debt/EBITDA 0.8 1.7 Equity/Asset ratio % 39.3 29.1 Net working capital, MSEK 473 425 Net working capital/Net sales LTM % 8.8 11.0 Available liquidity, MSEK 1,033 657 NCAB GROUP © | Q4 2022 presentation 22
Slide 23: This is where we are aiming
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 © | Q4 2022 presentation 23
Slide 24: 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 © | Q4 2022 presentation 24
Slide 25: Largest shareholders in NCAB
31 DECEMBER 2022 Largest shareholders in NCAB Owner nr of shares Share 1 R12 Kapital 29,851,550 16,0% 2 Swedbank Robur Fonder 16,505,910 8,8% 3 SEB Fonder 13,775,740 7,4% 4 Fjärde AP-fonden 12,517,958 6,7% 5 Tredje AP-fonden 8,603,220 4,6% 6 Montanaro 8,551,281 4,6% 7 AMF Pension & Fonder 8,417,830
Slide 26: Questions?
Questions? NCAB GROUP © | Q4 2022 presentation 26
Slide 27: Next quarterly report
FINANCIAL CALENDAR 2023 Next quarterly report: Q1 2023, April 26 AGM May 9 Investor contact: Gunilla Öhman gunilla.ohman@ncabgroup.com 27