Ncab Group Ab · OMXSTO:NCAB

Ncab Group Ab — Q1 2020 Earnings Presentation

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

  1. Slide 1: Investing into the future important in these times

    Investing into the future important in these times NCAB GROUP © | Q1 2020 PRESENTATION 1

  2. Slide 2: Today's presenters

    Today’s presenters HANS STÅHL ANDERS FORSÉN CEO CFO NCAB GROUP © | Q1 2020 PRESENTATION 2

  3. Slide 3: Agenda

    Agenda 1. NCAB – who we are and what we do 2. Q1 in short 3. Q1 financials 4. Summary 5. Q&A NCAB GROUP © | Q1 2020 PRESENTATION 3

  4. Slide 4: Mission and vision

    17 45 452 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 © | Q1 2020 PRESENTATION 4

  5. Slide 5: PCBs for making PCB-As

    THIS IS WHAT WE DO PCBs for making PCB-As NCAB GROUP © | Q1 2020 PRESENTATION 5

  6. Slide 6: Our journey

    PD Circuit M-Wave UAE Multiprint Altus 2012 2014 2015 2019 Flatfield 2019 Our journey 2020 BBG 2020 1993–2003 2004–2011 2012– Finland Denmark Russia Spain Poland France Italy Benelux Sweden Macedonia Norway China Germany UK USA Malaysia CAGR: 15.1% 1,781 1,818 1,617 1,400 1,203 1,226 924 711 520 561

  7. Slide 7: The quarter in numbers

    The quarter in numbers Stable quarter despite the Corona pandemia Q1 483 50 43.7* 9.0%* 2020 Net sales, MSEK Net sales, MUSD Adj. EBITA, MSEK Adj. EBITA margin Change vs +8% +3% +8%* -0.1 Q1 2019 *) adjusted for transaction costs re acquisition NCAB GROUP © | Q1 2020 PRESENTATION 7

  8. Slide 8: Events and highlights during and after Q1

    Events and highlights during and after Q1 Acquisition of Flatfield in the Netherlands effective 1 March Peter Kruk recruited as new CEO, starting 1 October at the latest The Board withdrew the suggested dividend and published preliminary Q1 results Acquisition of BBG, Florida, USA effective 1 May Di

  9. Slide 9: Business environment due to Corona virus

    Business environment due to Corona virus Situation Factories in China back in production end of February Most of Europe and USA closed down from end of March Customer deliveries have worked well Orders being placed earlier Factories busy producing 5G Activities Building customer relations via, telep

  10. Slide 10: Acquisition of Flatfield, Netherlands

    PRESS RELEASE MARCH 12 2020 Acquisition of Flatfield, Netherlands Leading PCB Supplier in the Benelux also selling in Germany Turnover of about SEK 300 million in 2019 EBITA of approximately SEK 25 million 50 employees mainly in the Netherlands and in Germany, but also 15 located in China Purchase p

  11. Slide 11: Acquisition of BBG in Largo, Florida, USA

    PRESS RELEASE APRIL 24 2020 Acquisition of BBG in Largo, Florida, USA Leading PCB Supplier in the US selling also in Canada Main suppliers in Taiwan, without US import tariffs Turnover of just over SEK 280 million in 2019 EBITA SEK 18 million 30 employees where of 10 in Taiwan Purchase price SEK 125

  12. Slide 12: Differences between the segments in Q1

    Differences between the segments in Q1 Growth EBITA margin + 1% incl Multiprint Net sales 16.9% Nettoomsättning NORDIC - 7% excl East 17% Nordic 27% +16% incl Flatfield North EUROPE + 3% excl 6.0% America 14% +19% incl Altus Europe NORTH AMERICA + 7% excl 9.6% 42% EAST -4% 5.9% NCAB GROUP © | Q1 202

  13. Slide 13: Slower top-line growth but stable gross margin

    Slower top-line growth but stable gross margin 1,781 1,818 1,617 1,400 1,203 1,226 31.3% 31.7% 31.6% 30.3% 30.2% 27.4% 2015 2016 2017 2018 2019 2020 LTM Net sales, MSEK Gross margin, % NCAB GROUP © | Q1 2020 PRESENTATION 13

  14. Slide 14: Slower growth in net sales and order intake in the quarter

    Slower growth in net sales and order intake in the quarter MSEK 8% Growth in net sales due to acquisition of Flatfield, In USD +3% Net sales from comparable units flat compared to Q1 2019 Some negative impact from February lock-down of factories in China 473.1 483.1 445.9 439.8 422.4 Order intake in

  15. Slide 15: Stable result and EBITA margin in the quarter

    Stable result and EBITA margin in the quarter MSEK 48 46.3 20% EBITA decreased to 37.9 MSEK 43 40.6 41.2 18% 37.3 37.9 (40.6). 43.7 MSEK excluding 38 16% transaction costs 33 14% 28 12% EBITA margin of 7.8% (9.1). 23 9.1% 10% 7.8% Excluding transaction costs, 9.0% 18 8% 13 6% Earnings per share reac

  16. Slide 16: Nordic

    SEGMENTS Nordic MSEK 17% EBITA margin 200 20% Net sales increased by 1% to 130,6 180 16.9% 18% MSEK (129.1), comparable units -7% 16.5% 160 16% Negative impacted by delivery 140 129.1 133.9 128.5 130.6 14% 125.1 problems from China due to Covid-19 120 12% 100 10% EBITA increased to 22.1 MSEK (21.3)

  17. Slide 17: Europe

    SEGMENTS Europe MSEK 16% Sales growth Net sales increased with 16% to 203.6, 20% 203.6 200 18% without Flatfield increase of 3% 175.3 183.3 168.0 16% Acquisition of Flatfield in March 148.4 14% 150 Weaker sales in Southern Europe and 12% UK due to Covid-19 and exposure to 10% 100 automotive (UK). 6.

  18. Slide 18: North America

    SEGMENTS North America MSEK 13% Net sales increased by 19% to 68 MSEK Net sales growth in USD (57), in USD revenue increased by 13%. 140 14% Tariffs are now included in net sales 120 12% Tariffs excluded for 2 and 4 layers 100 9.6% 10% Acquisition of Altus-PCB counted for two thirds of the increase

  19. Slide 19: East

    SEGMENTS East MSEK 20% Order intake 200 20% Net sales decreased 4% to 80.5 MSEK 180 18% China sales low in February 160 16% EBITA decreased to 4.7 MSEK (9.6), 140 14% corresponding to a margin of 5.9% 11.4% 120 12% (11.4). 100 92.6 89.7 10% 83.9 86.4 80.5 China suffered from Covid-19 and 80 8% Chine

  20. Slide 20: Directed share issue of SEK 287 million

    PRESS RELEASE 24 APRIL 2020 Directed share issue of SEK 287 million 1,85 m new shares in book building process Increases financial flexibility to act on possibilities in the market Increased liquidity in the share New shareholders Didner & Gerge, Lannebo fonder Increases by Swedbank Robur, 4 AP, 2 A

  21. Slide 21: KPIs

    KPIs March 2020 Dec 2019 ROE, % 36.8 39.8 Net debt/Adj. EBITDA 1.3 0.2 Equity/Asset ratio, % 34.6 39.9 Net working capital, MSEK 218.7 125.8 Available liquidity, MSEK 500*) 188 *) after Q1 NCAB GROUP © | Q1 2020 PRESENTATION 21

  22. Slide 22: Summary of the Q1 report

    Summary of the Q1 report Two important acquisitions during the first months Order intake strong, partly depending on earlier orders Gross margin and EBITA margin remain stable Factories in China busy building 5G Directed share issue increases strength and flexibility to be able to act swiftly on pos

  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 © | Q1 2020 PRESENTATION 23

  24. Slide 24: 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 © | Q1 2020 PRESENTATION 24

  25. Slide 25: Next quarterly report

    Next quarterly report: January-June, 2020 July 24, 2020 Investor contact: Gunilla Öhman [email protected] NCAB GROUP © | Q1 2020 PRESENTATION 25

  26. Slide 26: Thank you!

    Thank you! Thank you! NCAB GROUP © | Q1 2020 PRESENTATION 26

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