Ncab Group Ab · OMXSTO:NCAB

Ncab Group Ab — Q3 2020 Earnings Presentation

26 slides from Ncab Group Ab's earnings presentation, September 2020

  1. Slide 1: Continued growth - acquisitions following plan

    Continued growth - acquisitions following plan 1 NCAB GROUP © | Q3 2020 PRESENTATION

  2. Slide 2: Today's presenters

    Today’s presenters PETER KRUK ANDERS FORSÉN CEO CFO NCAB GROUP © | Q3 2020 PRESENTATION 2

  3. Slide 3: Summary of Q3 2020 for NCAB

    Summary of Q3 2020 for NCAB A somewhat normalized order book Signs of recovery in Europe and transport sector Successful acquisitions and integration drives growth Growth and improved profit in the US Cost savings continue to be positive for margins NCAB GROUP © | Q3 2020 PRESENTATION 3

  4. Slide 4: Mission and vision: PCBs for demanding customers

    17 45 469 23 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 © | Q3 2020 PRESENTATION 4

  5. Slide 5: PCBs for making PCB-As

    THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q3 2020 PRESENTATION 5

  6. Slide 6: Different applications

    Different applications NCAB GROUP © | Q3 2020 PRESENTATION 6

  7. Slide 7: Our attractive niche – HMLV

    Our attractive niche – HMLV MIX (<USD 2,000 per order line) High-Mix Low-Volume (HMLV) > Higher product value > Higher quality demand High > Less price pressure > Harder to buy direct High-Volume (>USD 2,000 per order line) Low VOLUME High Low NCAB GROUP © | Q3 2020 PRESENTATION 7 (>50 sqm per order

  8. Slide 8: Our journey of profitable growth

    PD Circuit M-Wave UAE Multiprint Altus 2012 2014 2015 2019 Flatfield 2019 2020 Our journey of profitable growth BBG 2020 1993–2003 2004–2011 2012– Finland Denmark Russia Spain Poland France Italy Benelux Sweden Macedonia Norway China Germany UK USA Malaysia CAGR: 16.0% 2 023 1 781 1 617 1 400 1 203

  9. Slide 9: Peter Kruk: My early impressions of NCAB

    Peter Kruk: My early impressions of NCAB Company Culture Decentralized and Value Driven Value add for Customers Customer Focused Lean Organization Opportunities to grow Well positioned in the market 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020: 3 LTM NCAB GROUP © | Q3 2020 PRESEN

  10. Slide 10: Effects of the corona pandemic in 2020

    Effects of the corona pandemic in 2020 Situation in NCAB Group Factories in China back in production end of February Customer deliveries have worked well despite the situation Order surge in first quarter followed by weak order influx in second and third quarters Signs of recovery in Europe Activiti

  11. Slide 11: The third quarter in numbers

    The third quarter in numbers Strong result and growth boosted by acquisitions Q3 537 60 50.1 9.3% 2020 Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin Change vs +22% +34% +8% -1.2 Q3 2019 NCAB GROUP © | Q3 2020 PRESENTATION 11

  12. Slide 12: Jan-Sep 2020 accumulated

    Jan-Sep 2020 accumulated Jan- Sep 1,600 170 139* 8.7%* Net sales, MSEK Net sales, MUSD EBITA, MSEK EBITA margin 2020 Change vs +18% +18% +12% - 40 Basis Points 2019 * Excl. transaction costs: EBITA 153 MSEK and EBITA-margin 9,6%

  13. Slide 13: Differences between the segments in Q3

    Differences between the segments in Q3 Growth EBITA margin NORDIC - 14 % 14.4 % + 32 % incl Flatfield EUROPE - 8 % excl 6.4 % +114 % incl Altus, BBG tariffs NORTH AMERICA +/- 0 % excl 7.4 % EAST -3% 11.2% NCAB GROUP © | Q3 2020 PRESENTATION 13

  14. Slide 14: Increased top-line growth due to acquisitions

    Increased top-line growth due to acquisitions 2,023 1,781 1,617 1,400 1,226 1,203 31.7% 30.3% 30.2% 31.3% 30.4% 27.4% 2015 2016 2017 2018 2019 2020:3 LTM Net sales, MSEK Gross margin, % NCAB GROUP © | Q3 2020 PRESENTATION 14

  15. Slide 15: Growth in net sales due to acquisitions

    Growth in net sales due to acquisitions MSEK 22% growth in net sales due to 700 acquisitions, in USD +34% 600 536.7 Net sales from comparable units in USD was flat compared to Q3 2019 500 439.8 Order intake increased by 15%, in 400 USD 24% 300 For comparable units a decrease in 200 USD by 7% 100 0 Q

  16. Slide 16: Strong result and EBITA margin in the quarter

    Strong result and EBITA margin in the quarter MSEK 50.1 52 46.3 13,0% EBITA increased to 50.1 MSEK (46.3) 11,0% 42 EBITA margin of 9.3% (10.5) 10.5% 9.3% 9,0% Earnings per share reached 1.68 32 SEK (2.29) 7,0% 22 State support from a few European 5,0% countries amounted to 1 MSEK 12 3,0% Operating c

  17. Slide 17: Nordic

    SEGMENTS 14% Nordic MSEK EBITA margin 200 20% 18.1% Net sales was down 14 % to 110.5 180 18% MSEK (128.5) 160 14.4% 16% EBITA decreased to 15.9 MSEK 140 14% (23.4) 120 133.9 134.3 12% EBITA margin somewhat weaker at 100 10% 14.4% 80 8% 60 6% Order intake decreased by 23% in the quarter, but with pos

  18. Slide 18: Europe

    SEGMENTS MSEK 32% Europe Sales growth 220.8 20% Net sales increased by 32% to 220.8, without Flatfield a decrease of 13% 18% 200 Some comeback in the UK, transport 168.0 16% sector, remaining strong market in 14% Germany while still weak sales in 150 12% Southern Europe 10% EBITA increased to 14.0 M

  19. Slide 19: North America

    SEGMENTS MSEK 131% Net sales North America 140 growth in USD 14% Net sales increased by 114 % to 122 122 120 12% MSEK (57) EBITA increased to 9.1 MSEK (3.6), 100 10% corresponding to a margin of 7.4% 7.4% (6.3) 80 8% 57 Order intake increased by 98%, in 60 6% USD by 114% whereof BBG counted 6.3% for

  20. Slide 20: East

    SEGMENTS -3% East MSEK Net sales 20% Net sales decreased by 3% to 140 18% 83.4 MSEK (86.4) partly 120 16% because of weaker sales in 13.9% 100 11.2% 14% China 12% 80 10% EBITA decreased to 9.3 MSEK 60 8% 86.4 (12.0), corresponding to a 83.4 6% 40 margin of 11.2% (13.9) 4% 20 2% Order intake decrease

  21. Slide 21: KPIs

    KPIs September December 2020 2019 ROE, % 23.9 39.8 Net debt/EBITDA -0.2 0.2 Equity/Asset ratio, % 46.7 39.9 Net working capital, MSEK 167.3 125.8 Available liquidity, MSEK 641 188 NCAB GROUP © | Q3 2020 PRESENTATION 21

  22. Slide 22: Financial targets and dividend policy, medium term

    Financial targets and dividend policy, medium term Dividend expected to Annual average growth Average adjusted EBITA Net debt/adjusted correspond to at least before acquisitions of margin of EBITDA less than 8% 8% 2x 50% of net profit NCAB GROUP © | Q3 2020 PRESENTATION 22

  23. Slide 23: Delivering on our strategic plan

    Delivering on our strategic plan Consolidate market Expand geographically Deeper collaboration with existing customers Increase market share in Europe, USA and East NCAB GROUP © | Q3 2020 PRESENTATION 23

  24. Slide 24: Q&A

    Q&A

  25. Slide 25: Next quarterly report

    Next quarterly report: Fourth quarter 2020: February 23, 2021 Investor contact: Gunilla Öhman [email protected] NCAB GROUP © | Q3 2020 PRESENTATION 25

  26. Slide 26: Thank you!

    Thank you! Thank you! Thank you! NCAB GROUP © | Q3 2020 PRESENTATION 26

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