Ncab Group Ab · OMXSTO:NCAB
Ncab Group Ab — Q1 2019 Earnings Presentation
32 slides from Ncab Group Ab's earnings presentation, May 14, 2019
Slide 1: Stable start for NCAB in 2019
Stable start for NCAB in 2019 Q1 2019 Presentation May 14, 2019 1
Slide 2: Today’s presenters
Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q1 2019 2
Slide 3: Agenda
Agenda 1. Q1 2019 in short 2. NCAB – who we are and what we do 3. Financials 4. Summary 5. Q&A NCAB GROUP © | Q1 2019 3
Slide 4: 1. Q1 2019 in short
1. Q1 2019 in short NCAB GROUP © | Q1 2019 4
Slide 5: The quarter in numbers
The quarter in numbers Strong profit development – together with tailwind in currency Q1 445.9 Revenue, MSEK 48.8 Revenue, MUSD 40.6 Adj. EBITA, MSEK 9.1% Adj. EBITA margin 2019 Change vs +19% +5% +21% +20 Q1 2018 Basis Points NCAB GROUP © | Q1 2019 5
Slide 6: Strong performance in most segments
Strong performance in most segments Growth EBITA margin NORDIC +34% 16.5% EUROPE +17% 6.6% NORTH AMERICA +1% 4.0% EAST +18% 11.4% NCAB GROUP © | Q1 2019 6
Slide 7: Events and highlights during and after Q1
Events and highlights during and after Q1 Start-up in Malaysia – local team in place. MD recruited in Netherlands Completed acquisition of Multiprint A/S – integration according to plan AGM resolved dividend of 75.8 MSEK, corresponding to 4.50 SEK per share As of May 10, tariffs for imported goods t
Slide 8: Acquisition of Multiprint A/S in Denmark
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 © | Q1 2019 8
Slide 9: 2. NCAB – who we are and what we do
2. NCAB – who we are and what we do NCAB GROUP © | Q1 2019 9
Slide 10: PCBs for making PCB-As
THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q1 2019 10
Slide 11: Mission and vision
17 45 388 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 © | Q1 2019 11
Slide 12: Why are printed circuit boards critical?
THE COST OF A FAULTY PCB Why are printed circuit boards critical? PCB Production Assembly End product 100% THE RATIO OF THE PCB COST VALUE TO THE PRODUCTION PHASE PCB share of product value 7% 0.5-2% PRODUCTION PHASE NCAB GROUP © | Q1 2019 12
Slide 13: 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 © | Q1 2019 13
Slide 14: 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 15: 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% 1,689 Revenue development 1,617 1,400 MSEK 1,203 1,226 924 711 561 601 520 374 322 200
Slide 16: Rayval customer case
• Rayval is a leading EMS company based in China, Suzhou covering a wide range of industries including telecom, industrial, automotive, power&energy and medical. • Rayval and NCAB started coorporation in 2014. • Through Rayval NCAB is delivering boards to demanding global end-customers such as Honey
Slide 17: Value NCAB brings to Rayval
“Partnering with NCAB provides a competitive product Value NCAB brings to Rayval: offering of reliable PCBs in the High Mix Low Volume segment. In addition, NCABs global network enables a • Product and service reliability strong global long-term partnership” • A competitive HMLV offer • An attractiv
Slide 18: 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 © | Q1 2019 18 The Integrated PCB Producer
Slide 19: 3. Financials
3. Financials NCAB GROUP © | Q1 2019 19
Slide 20: Top-line growth and stable gross margins
Top-line growth and stable gross margins 1,689 1,617 1,400 1,226 1,203 31.3% 31.6% 30.3% 30.2% 27.4% 2015 2016 2017 2018 2019, Q1 LTM Revenue, MSEK Gross margin, % NCAB GROUP © | Q1 2019 20
Slide 21: Net sales: Continued growth in revenue and order intake
Net sales: Continued growth in revenue and order intake MSEK 500 445.9 450 • Stable growth and order intake in 400 374.4 most segments coupled with tailwind in currencies 350 300 • Revenue increased by 19% in SEK, and by 5% in USD 250 200 • Order intake increased by 20% in SEK, and by 5% in USD 150
Slide 22: Result: Stronger result and margins
Result: Stronger result and margins MSEK 45 20% 40.6 40 18% • Adj. EBITA increased by 21%, reached 40.6 MSEK (33.5) 35 33.5 16% 14% • Adjusted EBITA margin of 9.1% (8.9) 30 12% 25 • Stronger result due to higher gross 9.1% 10% margin, sales growth and slower 20 increase in costs 8.9% 8% 15 6% • Earn
Slide 23: Strong development in Nordic
Strong development in Nordic 17% MSEK 200 20% EBITA margin 180 18% • Very strong growth – revenue 16.5% increased by 34% to 129.1 MSEK 160 16% (96.1) 140 129.1 14% 120 12% • Acquisition of Multiprint affected positively with 7 percentage points 100 96.1 10% 80 8% • Good performance in Norway and Den
Slide 24: Continued positive trend in Europe
Continued positive trend in Europe +17% MSEK 200 20% Revenue growth 180 175.3 18% • Positive trend continues – despite 160 150.2 16% strong end of 2018 140 14% • Revenue growth of 17% to 175.3 120 12% MSEK (150.2) and higher order intake 100 10% 80 8% • Italy fastest growing country. Expansion into
Slide 25: Transition in North America
Transition in North America +1% MSEK 200 20% Revenue growth • Modest growth of 1% to 57.6 180 18% MSEK (57.3) – in USD revenue 160 16% fell by 11% 140 14% • Shift from low tech to high tech 120 12% continues and NCAB can see growth 100 10% of new customers 80 8% • Trade tariffs of 10% are invoiced t
Slide 26: Stable performance in East
Stable performance in East +18% MSEK 200 20% Revenue growth 180 18% • Revenue growth of 18% to 83.9 MSEK (71.0) 160 16% 140 14% • Strongest development in Russia. Good momentum from new 120 12% 11.4% customers in China 100 10% 83.9 • Start-up in Malaysia – continues to 80 71.0 8% strengthen local te
Slide 27: KPIs
KPIs March 2019 March 2018 Dec- 2018 ROE, % 52.5 19.8 51.9 Net debt/Adj. EBITDA 0.3 1.3 -0.1 Equity/Asset ratio, % 41.8 22.3 41.0 Net working capital, MSEK 176.0 142.7 135.3 NCAB GROUP © | Q1 2019 27
Slide 28: 4. Summary
4. Summary NCAB GROUP © | Q1 2019 28
Slide 29: 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 Present Future NCAB GROUP © | Q1 2019 29
Slide 30: Financial targets, medium-term
Financial targets, medium-term Dividend expected to Annual average growth before Average adjusted EBITA Net debt/adjusted correspond to at least acquisitions of margin of EBITDA less than 8% 8% 2x 50% of net profit NCAB GROUP © | Q1 2019 30
Slide 31: Q&A
Q&A NCAB GROUP © | Q1 2019 31
Slide 32: Next quarterly report and investor contact
Next quarterly report: January-June, 2019 July 30, 2019 Investor contact: Gunilla Öhman [email protected] NCAB GROUP © | Q1 2019 32