Specialist in a globally growing niche. NCAB GROUP 5 October 2018

Transcription

1 Specialist in a globally growing niche

2 Agenda 1. NCAB in short 2. Our globally growing niche market 3. Focus on sustainability 4. Financials, strategy and goals

3 1. NCAB in short

4 15 companies 45 markets 366 specialists 18 factories MISSION PCBs for demanding customers, on time with zero defects and at the lowest total cost VISION The Number 1 PCB Producer wherever we are

5 VALUE Why are printed circuit boards critical? THE COST OF A FAULTY PCB 100% PCB Production Assembly End product THE RATIO OF THE PCB COST TO THE PRODUCTION PHASE 7% PRODUCTION PHASE 0,5-2%

6 Our journey FROM TRADER TO FULL SERVICE SUPPLIER 2012 WITH WORLDWIDE PRESENCE Finland Denmark Russia Spain Poland France Italy Sweden Macedonia Norway China Germany UK USA Revenue development, LTM MSEK CAGR: 16% q2 LTM

7 Why our customers love us 1,650 customers in 45 markets worldwide 18 main factories predominantly located in China One-stop-shop for PCB needs Purchasing power Quality control, knowledge and support Lower total cost for customers

8 Shorter time to market with NCAB

9 2. Our globally growing niche market

10 Why NCAB has a role to fill Europe and Americas 42% China 8% Europe and Americas 9% China 49% Rest of Asia 50% Rest of Asia 42% % of PCB production world wide % of PCB production world wide European/US factories market share down from 42% in 2000 to 9% in 2016

11 Low (>USD 2,000 per order line) High (<USD 2,000 per order line) Our attractive niche HMLV MIX High-Mix Low-Volume (HMLV) > Higher product value > Higher quality demand > Less price pressure High-Volume > Harder to buy direct High (>50 sqm per order) Low (<50 sqm per order) VOLUME

12 Growth PCB market split (2016) Total PCB market HMLV ~30% USD 60bn High volume ~70% E 2018E 2019E 2020E 2021E HMLV going through advanced traders 8-10 %

13 A market leading position worldwide ~165 ~160 ~150 REVENUE 2017 USD m ~125 ~100 ~40 ~40

14 3. Focus on sustainability

15 Our sustainability strategy

16 E N E R G Y Dedicated employees critical to NCAB s success Employee engagement ENGAGED 56% 44% UNFOCUSED Benchmark SATISFIED NCAB BORED PASSENGERS Finalist within the Best Service Companies category C L A R I T Y

17 4. Financials, strategy and goals

18 Revenue per quarter > Good growth and order intake in most segments we are increasing our market shares > Revenue increased by 11% in SEK, and 14% in USD > Order intake increased by 14% in SEK, and by 16% in USD > Continued strong markets in all regions MSEK ,1 415,8 Q Q Q Q Q2 2018

19 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Stable quarterly income Low seasonality and customer concentration generating stable performance Quarterly revenue split 1) Quarterly EBITDA split 1) % of year total % of year total 27% 25% 26% 25% 24% 24% 24% 25% 26% 27% 25% 23% 28% 31% 30% 29% 32% 30% 27% 25% 23% 23% 10% 2) 11% Note: 1) Figures are unaudited and refer to management accounts. 2) Accrual for bonuses during the year resulted in a cost catch up effect in December. Source: Company information

20 Low customer concentration % of revenue 2017 Top 2: ~11% Top 10: ~27% Others ~50% SEK 1,400m Top 50: ~50%

21 Continued top-line growth and stable gross margins ,3% 30,2% 30,5% 27,4% , q2 LTM Revenue Gross margin

22 Profit per quarter, Q MSEK 40 20% > Adjusted EBITA on stable levels, reached 32 MSEK ,2 32,0 18% 16% 14% 12% > Result affected by growth initiatives, IPO % 10% 8% preparations and headwinds in currency % 4% 2% 0 Q Q Q Q Q Adj. EBITA, Mkr Adj. EBITA margin, % 0%

23 Our segments; Nordic MSEK % EBITA margin 20% > Mature market with low growth > We have a stable development and moderate growth ,6 17,5% 106,8 18% 16% 14% 12% 10% > High market share > Focus on profitability % 6% 4% 20 2% 0 Q Q Q Q Q Revenue EBITA margin, % 0%

24 Our segments; Europe MSEK +22% Revenue growth 164,0 20% > High market growth > Ambitious expansion ,1 18% 16% 14% > Strong development in Germany and in the UK > Newest market Italy was established in 2017 > Profitability affected by focus ,9% 12% 10% 8% 6% 4% on growth and recruitments 20 2% 0 Q Q Q Q Q Revenue EBITA margin, % 0%

25 Our segments; USA MSEK -2% Revenue growth > Transition from low-tech to 160 8% high-tech products will take 140 7% all 2018 before profitability will be restored > Positive trend of number of new customers ,5% 72,8 71,5 6% 5% 4% 60 3% 40 2% 20 1% 0 Q Q Q Q Q % Revenue EBITA margin, %

26 Our segments; East MSEK +6% Revenue growth % > Strong development in China stable performance and % tough comparables in Russia % > Looking for establishment in new countries ,6 73,5 9,9% 10% 8% 60 6% 40 4% 20 2% 0 Q Q Q Q Q Revenue Adj. EBITA margin, %* 0%

27 Balance sheet KPIs 0,6% Net debt/adj. EBITDA LTM June -18 June ROE, % Net debt/adj. EBITDA Solvency, % Net working capital, MSEK

28 Strategic plan supporting continued growth Expand geographically Consolidate market Increase market share in Europe, USA and East Ensure profitability from existing customers 2017 Future

29 Financial targets, medium-term Average annual organic revenue growth of 8% Adjusted EBITA margin of 8% Net debt/adjusted EBITDA less than 2x Dividend expected to correspond to at least 50% of net profit

30 Ownership structure pre and post IPO Shareholder Pre IPO, % Aug 31, % R12 Kapital 61,8% 23,1% Norron funds - 7,2% AP 4-7,2% Hans Ståhl, CEO 8,0% 5,2% Länsförsäkringar funds - 4,2% AP 3-4,0% Swedbank Robur - 3,9% Cliens funds - 3,6% Christian Salamon, Chariman (via Gogoy AB) 8,7% 3,3% C Worldwide Asset Management - 3,0% Lazard Asset Management - 2,9% Vladimir Makarov, (Head of Russia) 3,7% 2,5% Riksbankens Jubileumsfond - 2,4% AMF Fonder - 2,1% Anders Forsén, CFO 2,7% 2,0% Others 15,1% 23,6% Total 100% 100%

31 Q & A