NCAB Group

Quarterly Report • Apr 25, 2024

Interim report January–March 2024

JANUARY–MARCH 2024

• Net sales decreased by 17% to SEK 950.6 million (1,146.4). Compared with the year-earlier period, sales were affected by lower prices and continued inventory adjustments by customers. In USD, net sales decreased 17%. For comparable units, net sales decreased 24% in both SEK and USD.
• Order intake decreased 6% to SEK 970 million (1,030). The decrease in USD was 5%. Order intake for comparable units decreased 14% in both SEK and USD. However, compared with the three most recent quarters order intake increased and book to bill ended positively on 1.02.
• EBITA decreased to SEK 142.6 million (183.7), representing an EBITA margin of 15.0% (16.0).
• Cash flow from operating activities was SEK 92.9 million (201.9).
• Operating profit was SEK 127.4 million (172.6).
• Profit after tax was SEK 89.8 million (125.0).
• Earnings per share before and after dilution was SEK 0.48 (0.67).

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• The Board of Directors proposes a dividend of SEK 1.10 (1.10) per share to be paid in May.
• Tim Benjamin was appointed to replace Anders Forsén as new CFO. Tim will take up his new duties in October at the latest.
• On 11 April, 100 per cent of shares were acquired in Cumatrix BV, in Lommel, Belgium.

Key performance indicators	Jan-Mar			Full-year
	2024	2023	%	LTM	2023
Order intake, SEK million	969,7	1 029,6	-5,8	3 690,9	3 750,8
Order intake, USD million	93,3	98,7	-5,5	348,0	353,4
Net sales, SEK million	950,6	1 146,4	-17,1	3 892,1	4 087,8
Net sales, USD million	91,5	109,9	-16,8	366,7	385,2
Gross margin, %	37,6	33,6		37,1	36,0
EBITA, SEK million	142,6	183,7	-22,4	605,7	646,9
EBITA margin, %	15,0	16,0		15,6	15,8
Operating profit, SEK million	127,4	172,6	-26,2	546,2	591,4
Operating margin, %	13,4	15,1		14,0	14,5
Profit after tax, SEK million	89,8	125,0	-28,2	368,7	403,9
Earnings per share before dilution, SEK	0,48	0,67	-28,1	1,97	2,16
Earnings per share after dilution, SEK	0,48	0,67	-28,2	1,96	2,15
Cash flow from operating activities, SEK million	92,9	201,9	-54,0	591,4	700,4
Return on capital employed, %				22,8	26,1
Return on equity, %				26,3	31,9
USD/SEK - average	10,39	10,42		10,60	10,61
EUR/SEK - average	11,49	11,20		11,49	11,48

MESSAGE FROM THE CEO Progress in a brightening market

During the first quarter, we noted a weak, but distinct, increase in order intake after the flat development over the past two quarters, which followed on from several quarters of decline linked to a weaker economy and inventory adjustments across several customer levels. All segments, with the exception of East, noted positive trends, where North America has increased sequentially over the past four quarters, while Europe and Nordic improved following a weak fourth quarter of 2023. The German market remains soft, and we are yet to witness a turnaround in China.

Net sales were in line with order intake in previous quarters and as order intake grows, the book to bill has now risen just above one again. Profitability also remains at a healthy level where cost savings in purchasing and logistics offset lower prices to customers compared with the first quarter of 2023. Prices from factories in Asia were stable during the quarter but capacity utilisation increased slightly, and raw material prices have begun to rise, which will probably lead to an increase in prices as we move forward. We can also see an increase in freight costs from Asia, which is an indication that the economic situation has strengthened somewhat.

Some areas were particularly strong during the quarter. We increased our focus in Aerospace to secure new customers and business in several markets. Defence developed favourably and we are striving to expand our strong base in the Nordic region to more countries in Europe and North America. In Automotive, we can see a strong performance for our sales to heavy vehicles also linked to our presence in new, high-tech product areas such as intelligent camera solutions instead of traditional rear view mirrors. We also noted that inventory adjustments by our customers and their customers are coming to an end, and customers who have not placed orders for several quarters have now returned. Furthermore, we can see higher activity by many customers and the number of contracts won for new articles has increased by 20 per cent year-on-year.

However, we do not expect a rapid rebound in the market but rather a gradual improvement. Assuming the continuing overall improvement in the global economy, the conditions are right for a strong second half of the year. Profitability remains healthy with strong cash flow and we are well prepared to continue to capture market share as demand accelerates.

In terms of acquisitions, we acquired a small company in Belgium, Cumatrix BV, after the end of the period. During the quarter, our pipeline of acquisitions grew further, and we are involved in a number of concrete discussions. We believe the M&A climate has improved but it is always difficult to reliably predict when these transactions can be finalised.

Lastly, I am pleased to conclude our recruitment process for a new CFO and happy to welcome Tim Benjamin to the NCAB Group. Tim has a solid global background, is business-oriented and has M&A experience. Tim will begin in October at the latest. I would also like to take this opportunity to extend my deep gratitude to Anders Forsén, who has been instrumental in NCAB's strong performance for the past 16 years.

We can see higher activity by many customers and the number of contracts won for new articles has increased "

"

Peter Kruk President and CEO, NCAB Group AB

Q1 2024

950.6 Net sales, SEK million

JANUARY–MARCH 2024

ORDER INTAKE

Compared with the latest three quarters, we are beginning to see increased activity in the market. The number of contracts won for new articles has increased by 20 per cent, which is positive. Destocking by our customers and our customers' customers, which affected order intake in 2023, has begun to wane and order intake increased slightly in most of our segments. The price level continues to be lower than one year ago but has remained stable since the second half of 2023. In Europe, the German market remains weak, though better than in the final quarter of 2023.

Order intake for the quarter amounted to SEK 970 million (1,030), a decrease of 6 per cent. Order intake for comparable units decreased 14 per cent in both SEK and USD. Book to bill was 1.02. Compared with the recent quarters, order intake improved in all segments except East.

NET SALES

Net sales decreased in the quarter by 17 per cent to SEK 950.6 million (1,146.4). The decrease in USD was also 17 per cent. The decline occurred in all segments and followed the order intake in recent quarters. With lead times back at normal levels, the relation between a quarter's order intake and the following quarter's net sales was once again at parity. Net sales for comparable units decreased 24 per cent in both SEK and USD.

GROSS PROFIT

NCAB has continued to offset lower market prices with cost savings and the continuing transfer to more high-tech applications, which resulted in a gross margin of 37.6 per cent (33.6). This meant gross profit only declined 7 per cent despite a decrease in net sales of 17 per cent.

EARNINGS

Healthy gross profit and stable cost control produced another good EBITA result of SEK 142.6 million (183.7). The change compared with the first quarter of 2023 mainly reflects lower net sales. The EBITA margin amounted to 15.0 per cent (16.0). Compared with the year-earlier period, EBITA margin improved in the Europe segment, while margins declined slightly in other segments. Operating profit for the quarter decreased to SEK 127.4 million (172.6).

Net financial items amounted to -7.3 million (-9.8), interest expenses excluding IFRS 16 increased to SEK -16.1 million (-13.2) while foreign currency conversion rates generated foreign exchange gains of SEK 9.0 million (4.3). Tax amounted to -30.2 million (-37.8). The average tax rate was 25.2 per cent (23.2). Profit after tax for the period totalled 89.8 million (125.0). Earnings per share was SEK 0.48 (0.67) both before as well as after dilution.

Net working capital increased slightly compared with year-end but decreased 29 per cent year-onyear. Cash flow from operating activities was SEK 92.9 million (201.9). Decreases in inventory and net working capital contributed to strong cash flows in 2023.

BREAKDOWN BY SEGMENT, JANUARY–MARCH 2024

PERFORMANCE BY SEGMENT

NORDIC

Denmark, Finland, Norway, Poland and Sweden. The margin in this segment is high due to a high technology content and generally lower volumes per order. As of 2024, Poland is included in the Nordic segment. Net sales and earnings for 2023 are adjusted and also include Poland. The transfer of the Polish operations is logical, as many of NCAB's customers operate in both the Nordic region and Poland, which facilitates customer relations.

First quarter 2024

Order intake decreased compared with the year-earlier period and amounted to SEK 234 million (263), though order intake increased by more than 10 per cent compared with the two last quarters of 2023. Book to bill was 1.08.

19% EBITA margin

Net sales amounted to SEK 216.0 million (286.1). Year-on-year, the greatest decline was seen in Denmark. For customer segments, sales of PCBs for electric car chargers remained healthy and the defence industry continued to grow.

The segment demonstrated sustained stable and a high EBITA margin of 19.2 per cent compared with 20.7 per cent in the year-earlier period. However, EBITA decreased to SEK 41.4 million (59.2) due to lower net sales.

NORDIC	Jan-Mar			Full-year
SEK million	2024	2023	%	LTM	2023
Order intake	234.4	263.5	-11.0	879.3	908.4
Net sales	216.0	286.1	-24.5	883.8	953.9
EBITA	41.4	59.2	-30.0	169.3	184.2
EBITA margin, %	19.2	20.7		19.2	19.3

EUROPE

Belgium, France, Germany, Italy, the Netherlands, North Macedonia, Portugal, Switzerland, Spain and the United Kingdom. All companies in the Europe segment have a strategic focus on continued growth. The Europe segment has been strengthened through a number of acquisitions in recent years. As of 2024, Poland was transferred from the Europe to the Nordic segment. Earnings for 2023 were adjusted and Poland was excluded.

First quarter 2024

Order intake for the quarter amounted to SEK 488 million (535), up 10 per cent from the fourth quarter of 2023. Order intake for comparable units decreased 13 per cent in both SEK and USD. Compared with the year-earlier period, order intake was impacted by lower prices and customer destocking. The German market has recovered somewhat compared with the end of 2023, but still reported a weaker performance than other markets in the segment. Book to bill was 0.97.

Net sales in the first quarter decreased 23 per cent to SEK 503.3 million (649.5). Net sales in comparable units decreased 27 per cent and by 26 per cent in USD. The first quarter of 2023 was by far the strong quarter in 2023 in terms of sales.

Despite lower net sales, the EBITA margin increased to 15.2 per cent (14.9). However, EBITA decreased to SEK 76.6 million (96.7). A higher gross margin as well as synergies from acquired companies contributed to increased EBITA margin. In April, a small company was acquired in Belgium, Cumatrix. The company will be included in operations in the Netherlands. A local company in Belgium will help NCAB to address the cultural differences that exist within the Benelux region and to grow sales.

EUROPE	Jan-Mar			Full-year
SEK million	2024	2023	%	LTM	2023
Order intake	488.3	534.7	-8.7	1,894.7	1,941.1
Net sales	503.3	649.5	-22.5	2,049.9	2,196.1
EBITA	76.6	96.7	-20.8	300.3	323.3
EBITA margin, %	15.2	14.9		14.6	14.7

15% EBITA margin

NORTH AMERICA

NCAB has six offices in the USA that cover the country from east to west. The North American market is an important growth region where NCAB is focusing on growing organically as well as through acquisitions.

First quarter 2024

Since mid-2023, order intake has improved quarter-by-quarter and order intake for the first quarter 2024 was 5 per cent higher than the fourth quarter 2023. Compared with the first quarter of last year, order intake increased to SEK 199 million (170), though adjusted for the acquisition of Phase 3 Technologies in May, order intake was down 17 per cent in both SEK and USD. Book to bill was 1.04.

Net sales for the segment were SEK 190.8 million (158.7). Adjusted for the acquisition, net sales decreased 16 per cent due to the weaker order intake in recent quarters. The lower net sales had a negative impact on earnings and the EBITA margin. However, North America, similar to other segments, improved its gross margins, despite EBITA decreasing to SEK 24.7 million (26.2) and EBITA margin decreasing to 13.0 per cent (16.5).

NORTH AMERICA SEK million 2024 2023 % LTM 2023 Order intake 199.5 169.9 17.4 728.9 699.4 Net sales 190.8 158.7 20.2 750.9 718.8 EBITA 24.7 26.2 -5.5 107.3 108.7 EBITA margin, % 13.0 16.5 14.3 15.1 Jan-Mar Full-year

EAST

China and Malaysia. In China, NCAB has sales offices in Shenzhen, Beijing, Suzhou and Wuhan. Operations in Malaysia started in 2019.

First quarter 2024

Demand in the Chinese market remained weak. Customer activities increased and even though order intake decreased year-on-year, it has remained relatively stable compared with the three most recent quarters. Competition from local PCB factories in China has increased due to the factories' low utilisation levels. It is therefore even more important for NCAB to focus on higher technology content and more demanding customers. Order intake during the quarter amounted to SEK 48 million (62). Book to bill was 1.18.

Net sales for the quarter amounted to SEK 40.5 million (52.1), entailing a decrease of 22 per cent in SEK and USD.

NCAB has consistently focused on demanding customers with a significant need for service and high complexity. This meant that profitability could be kept at a high level, even if the lower net sales had an adverse impact on EBITA and EBITA margin compared with the year-earlier period. EBITA for the quarter amounted to SEK 6.1 million (8.9), corresponding to an EBITA margin of 15.1 per cent (17.1).

EAST	Jan-Mar			Full-year
SEK million	2024	2023	%	LTM	2023
Order intake	47.6	61.6	-22.8	187.9	202.0
Net sales	40.5	52.1	-22.2	207.5	219.1
EBITA	6.1	8.9	-31.3	39.5	42.3
EBITA margin, %	15.1	17.1		19.1	19.3

*) Until first quarter 2022, Russia was part of EAST. The Russian business was sold in Q2 2022.

FINANCIAL POSITION

CASH FLOW AND INVESTMENTS

Working capital returned to a normal, long-term level, following the effects of the pandemic. Ocean freight now accounts for a larger share of deliveries, which has impacted inventory levels as there is an increase in NCAB's inventory in transit. More ocean freight has reduced our CO2 emissions. Cash flow from operating activities in the quarter was SEK 92.9 million (201.9). Cash flow for the first quarter of 2023 was heavily influenced by lower working capital. Tied-up working capital for the Group on 31 March 2024 corresponded to 6.4 per cent (8.0) of net sales over the past 12 months. NCAB has credit insurance for most of the trade receivables outstanding.

Cash flow from investing activities was SEK -0.1 million (-73.7) during the quarter. Investments in 2023 mainly comprised acquisitions of SEK 53.6 million and investments in the new IT platform of SEK 18.7 million. The new IT platform is now being rolled out company by company and migration and training costs are being recognised on an ongoing basis. Depreciation of the new IT platform will begin later in 2024.

LIQUIDITY AND FINANCIAL POSITION

Net debt at the end of the quarter was SEK 484.0 million (447.8). The equity/assets ratio was 43.7 per cent (40.9) and equity was SEK 1,506.9 million (1,299.2). At the end of the period, the Group had available liquidity, including undrawn acquisition credits and overdraft facilities, of SEK 1,104 million (1,147).

At 31 March 2024, NCAB had loans including the utilised overdraft facility totalling SEK 995 million. The loans comprised a loan of SEK 550 million and two acquisition credits totalling SEK 750 million (of which SEK 450 million was drawn). In addition, there was a utilised overdraft facility of SEK 215 million. The credit of SEK 550 million is free of instalments and expires in 2026. The other credits are free of instalments until the end of June 2024. As of the second quarter of 2024, NCAB will amortise SEK 22.5 million per quarter. At the balance sheet date of 31 March 2024, the company complied with all covenants under the financing agreement.

Other

SIGNIFICANT RISKS AND UNCERTAINTIES

Through its operations, the Group is exposed to risks of both a financial and an operational nature, which the Group can influence to a greater or lesser extent. Continuous processes are in place in the Group to identify any risks and assess how they should be managed.

Operational risks include commercial risks arising from changes in economic activity and demand as well as customer preferences and relationships to the company. Other risks are related to the production capabilities, capacity and order books of the company's manufacturers, and to the availability and prices of raw materials. The company is also dependent on the continued trust of its employees and its ability to recruit skilled employees.

Regarding financial risks, the Group is exposed to currency risk, primarily the exchange rates between USD, EUR and SEK, through the translation exposure of sales and purchase ledgers, and reported assets, liabilities and net investments in the operations. The Group is also exposed to other risks, such as interest rate risk, credit risk and liquidity risk.

There are also geopolitical risks, for example as a result of the large share of factories used by NCAB being located in China. See NCAB's 2023 Annual Report for a more detailed description of the Group's risk exposure and risk management.

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• The Board of Directors proposes a dividend of SEK 1.10 (1.10) per share to be paid in May.
• Tim Benjamin was appointed to replace Anders Forsén as new CFO. Tim will take up his new duties in October at the latest.
• On 11 April, 100 per cent of shares were acquired in Cumatrix BV, after which NCAB gained a local presence in Belgium.

RELATED-PARTY TRANSACTIONS

No material related-party transactions took place during the period.

ORGANISATION

On 31 March 2024, the number of employees was 607 (587), of whom 263 (267) were women and 344 (320) were men. The average number of employees in the organisation during the quarter was 605 (587), of whom 264 (264) were women and 342 (323) were men.

PARENT COMPANY

The Parent Company's net sales for the first quarter were SEK 56.6 million (42.6). Sales consist exclusively of internal billing. Profit after financial items was SEK 20.8 million (2.7) for the quarter. The improvement is primarily due to positive exchange-rate changes.

DECLARATION OF THE BOARD OF DIRECTORS AND CHIEF EXECUTIVE OFFICER

The Board of Directors and Chief Executive Officer provide their assurance that the interim report gives a true and fair view of the Group's and the Parent Company's operations, position and results and describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Sundbyberg, 24 April 2024

Christian Salamon Hans Ramel Chairman of the Board Director

_____________________ _____________________

Magdalena Persson Gunilla Rudebjer Director Director

Hans Ståhl Peter Kruk Director President and CEO

CONTACT

For further information, please contact: Anders Forsén, CFO +46 (0)8 4030 0051 Gunilla Öhman, IR Manager, +46 (0)70 763 81 25

This interim report has not been reviewed by the company's auditor.

____________________ _____________________

____________________ _____________________

This is information that NCAB Group AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on 25 April 2024, at 7:30 a.m.

NCAB Group AB (publ)

Tel: +46 (0)8 4030 0000 Löfströms Allé 5, SE-172 66 Sundbyberg, Sweden www.ncabgroup.com

NCAB Group is publishing the interim report for the first quarter of 2024 on Thursday 25 April at 7:30 a.m. A web-cast teleconference will be held at 10:00 a.m. CEST on the same date, where President and CEO Peter Kruk and CFO Anders Forsén will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English. For those who wish to participate via webcast, please use the link below:https://ir.financialhearings.com/ncab-group-q1-report-2024

For those who wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.financialhearings.com/teleconference/?id=50048798

FINANCIAL CALENDAR

Annual General Meeting 8 May 2024 Interim report second quarter 23 July 2024 Interim report third quarter 5 November 2024 Year-end report 13 February 2025

About NCAB Group

NCAB is a worldwide leading supplier of printed circuit boards (PCBs), listed on NASDAQ Stockholm. NCAB offers PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterised by an entrepreneurial and cost-efficient culture and have showed strong growth and good profitability over time. Today, NCAB has a local presence in 18 countries in Europe, Asia and North America. Net sales in 2023 amounted to SEK 4,088 million. Organic growth and acquisitions are part of NCAB's strategy. For more information about NCAB Group, please visit us at www.ncabgroup.com.

Group

CONSOLIDATED INCOME STATEMENT

	Jan-Mar			Jan-Dec
SEK million	2024	2023	LTM	2023
Operating revenue
Net sales	950.6	1,146.4	3,892.1	4,087.8
Other operating income	4.7	0.8	37.8	33.9
Total	955.3	1,147.1	3,929.9	4,121.7
Raw materials and consumables	-593.6	-761.4	-2,459.2	-2,627.0
Other external expenses	-63.5	-60.5	-239.3	-236.3
Staff costs	-145.6	-130.2	-573.5	-558.0
Dep. and amort of fixed assets	-25.2	-21.1	-102.8	-98.6
	-0.1	-1.5	-8.9	-10.3
Other operating expenses	-827.9	-974.5
Total operating expenses			-3,383.7	-3,530.3
Operating profit	127.4	172.6	546.2	591.4
Net financial income/expense	-7.3	-9.8	-55.3	-57.8
Profit before tax	120.0	162.8	490.8	533.6
Income tax	-30.2	-37.8	-122.1	-129.7
Profit for the period	89.8	125.0	368.7	403.9
Profit attributable to:
Shareholders of the Parent Company	89.8	124.9	368.6	403.7
Non-controlling interests	0.0	0.1	0.0	0.1
Average number of shares before dilution	186,966,790	186,935,340	186,958,959	186,951,183
Average number of shares after dilution	187,614,231	187,385,190	187,599,804	187,552,145
Earnings per share before dilution	0.48	0.67	1.97	2.16
Earnings per share after dilution	0.48	0.67	1.96	2.15

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Jan-Mar				Jan-Dec
SEK million	2024	2023	LTM	2023
Profit for the period	89.8	125.0	368.7	403.9
Other comprehensive income, items that can subsequently be reclassified to profit or loss:
Foreign exchange differences	79.1	-23.8	32.3	-70.6
Total comprehensive income	168.9	101.2	401.0	333.2
Profit attributable to:
Shareholders of the Parent Company	168.9	101.1	400.9	333.1
Non-controlling interests	0.0	0.1	0.0	0.1

CONSOLIDATED BALANCE SHEET

SEK million

ASSETS	31 Mar 2024	31 Mar 2023	31 Dec 2023
Non-current assets
Goodwill	1,396.2	1,061.0	1,345.8
Other intangible assets	241.4	193.3	251.6
Leasehold improvement costs	6.4	8.3	6.8
Right-of-use Office and Cars	72.3	81.1	70.4
Plant and equipment	12.9	11.5	13.0
Financial assets	7.1	3.9	7.3
Deferred tax assets	21.5	12.5	20.8
Total non-current assets	1,757.8	1,371.6	1,715.7
Current assets
Inventories	267.7	400.1	315.2
Trade receivables	769.6	869.3	655.0
Other current receivables	33.1	36.1	31.8
Prepaid expenses and accrued income	29.4	27.8	25.0
Cash and cash equivalents	589.0	471.7	478.6
Total current assets	1,688.8	1,804.9	1,505.6
TOTAL ASSETS	3,446.6	3,176.5	3,221.3
EQUITY AND LIABILITIES
Equity attributable to shareholders of the Parent Company
Share capital	1.9	1.9	1.9
Additional paid-in capital	478.1	478.1	478.1
Reserves	132.5	100.2	53.4
Retained earnings	894.1	718.6	801.7
Non-controlling interests	0.2	0.4	0.2
Total equity	1,506.9	1,299.2	1,335.3
Non-current liabilities
Borrowings	905.7	834.2	927.8
Leased liabilites	43.2	53.4	42.8
Deferred tax	78.8	65.6	76.9
Total non-current liabilities	1,027.7	953.2	1,047.5
Current liabilities
Current liabilities	90.0	0.2	67.5
Current right-of-use liabilities	34.1	31.7	32.4
Trade payables	479.8	515.9	445.0
Current tax liabilities	88.0	135.8	81.7
Other current liabilities	97.5	120.3	80.7
Accrued expenses and deferred income	122.6	120.2	131.2
Total current liabilities	912.0	924.1	838.5
TOTAL EQUITY AND LIABILITIES	3,446.6	3,176.5	3,221.3

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK million	Share capital	Additional paid-in capital	Reserves	Retained earning	Total	Non-controlling interests	Total equity
1 Jan 2023	1.9	478.1	124.0	591.5	1,195.6	0.3	1,195.8
Profit for the period				124.9	124.9	0.1	125.0
Other comprehensive
income for the period	-	-	-23.8	-	-23.8	-	-23.8
Total comprehensive
income	-	-	-23.8	124.9	101.1	0.1	101.2
Dividend	-	-	-
Own shares	-	-	-	0.5	0.5	-	0.5
Cost for Warrants	-	-	-	1.7	1.7	-	1.7
Total transactions with shareholders, recognised directly in equity	-	-	-	2.2	2.2	-	2.2
31 Mar 2023	1.9	478.1	100.2	718.6	1,298.8	0.4	1,299.2

Attributable to shareholders of the Parent Company

Attributable to shareholders of the Parent Company

		Additional
SEK million	Share capital	paid-in capital	Reserves	Retained earning	Total	Non-controlling interests	Total equity
1 Jan 2024	1.9	478.1	53.4	801.7	1,335.1	0.2	1,335.3
Profit for the period				89.8	89.8	0.0	89.8
Other comprehensive
income for the period Total comprehensive	-	-	79.1	-	79.1	-	79.1
income	-	-	79.1	89.8	168.9	0.0	168.9
Dividend	-	-	-		-	-	-
Own shares	-	-	-		-	-	-
Cost for Warrants	-	-	-	2.6	2.6	-	2.6
Total transactions with shareholders, recognised directly in equity	-	-	-	2.6	2.6	-	2.6
31 Mar 2024	1.9	478.1	132.5	894.1	1,506.6	0.2	1,506.9

	Jan-Mar			Jan-Dec
SEK million	2024	2023	LTM	2023
Cash flow from operating activities
Profit before net financial income/expense	127.4	172.6	546.2	591.4
Adjustment for non-cash items	20.4	27.6	59.2	66.4
Interest received	0.7	0.1	11.5	10.9
Interest paid	-15.7	-13.2	-66.0	-63.5
Income taxes paid	-39.7	-13.4	-202.1	-175.7
Cash flow from operating activities before changes in working capital	93.1	173.7	348.8	429.4
Change in inventories	59.5	104.8	148.0	193.3
Change in current receivables	-84.6	-62.4	212.5	234.6
Change in current operating liabilities	24.9	-14.2	-117.8	-156.9
Total changes in working capital	-0.2	28.1	242.6	271.0
Cash flow from operating activities	92.9	201.9	591.4	700.4
Cash flow from investing activities
Investments in property, plant and equipment	-0.6	-1.3	-4.1	-4.8
Investments in intangible assets	-	-18.9	-29.0	-47.8
Investments in subsidiaries	-	-53.6	-382.6	-436.3
Investments in financial assets	0.4	-	-1.4	-1.8
Cash flow from investing activities	-0.1	-73.7	-417.1	-490.7
Cash flow from financing activities
Borrowings	-	-	160.0	160.0
Repayment of leased liabilities	-8.4	-8.8	-32.1	-32.6
Dividend	-	-	-205.7	-205.7
Cash flow from financing activities	-8.4	-8.8	-77.8	-78.2
Decrease/increase in cash and cash equivalents
Cash flow for the period	84.4	119.3	96.5	131.5
Foreign exchange difference in cash and cash equivalents	26.0	-5.4	20.8	-10.7
Cash and cash equivalents at beginning of period	478.6	357.8	471.7	357.8
Cash and cash equivalents at end of period	589.0	471.7	589.0	478.6

Parent Company

PARENT COMPANY INCOME STATEMENT

	Jan-Mar	Jan-Dec
SEK million	2024	2023	2023
Operating revenue
Net sales	56.6	42.6	185.9
Total	56.6	42.6	185.9
Other external expenses	-33.9	-23.2	-128.2
Staff costs	-14.0	-11.8	-60.0
Depreciation of property, plant and equipment,
and amortisation of intangible assets	-0.0	-0.0	-0.0
Total operating expenses	-48.0	-35.0	-188.2
Operating loss	8.6	7.6	-2.3
Net financial income/expense	12.2	-4.9	-59.3
Net financial income/expense	12.2	-4.9	226.3
Profit before tax	20.8	2.7	224.0
Tax on profit for the period	-0.4	-0.6	-4.3
Profit for the period	20.4	2.1	248.6

The Parent Company has no items which are accounted for as other comprehensive income. Total comprehensive income is therefore the same as profit for the period.

PARENT COMPANY BALANCE SHEET

SEK million

ASSETS	31 Mar 2024	31 Mar 2023	31 Dec 2023
Non-current assets
Capitalised development costs	76.0	47.3	76.0
Plant and equipment	0.1	0.1	0.1
Non-current financial assets	910.9	909.9	910.8
Non-current financial assets from Group companies	457.8	307.4	482.2
Total non-current assets	1,444.8	1,264.7	1,469.1
Current assets
Receivables from Group companies	51.1	100.2	42.4
Other current receivables	1.5	6.1	4.1
Prepaid expenses and accrued income	4.2	5.1	4.8
Cash and cash equivalents	199.0	94.1	116.7
Total current assets	255.9	205.6	168.0
TOTAL ASSETS	1,700.7	1,470.3	1,637.1
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital (186,971,240 shares)	1.9	1.9	1.9
Non-restricted equity
Share premium account	478.1	478.1	478.1
Retained earnings	-160.2	-203.1	-408.8
Profit/ loss for the period	20.4	2.1	248.6
Total equity	340.2	279.0	319.8
Untaxed reserves	-	1.0	-
Non-current liabilities
Liabilities to credit institutions	905.7	834.2	927.8
Other provisions	2.1	-	2.0
Total non-current liabilities	907.8	834.2	929.8
Current liabilities
Liabilities to credit institutions	90.0	-	67.5
Trade payables	6.7	15.3	7.3
Liabilities to Group companies	331.7	324.2	284.9
Current tax liabilities	2.3	0.9	4.2
Other current liabilities	3.8	7.6	0.8
Accrued expenses and deferred income	18.2	8.1	22.7
Total current liabilities	452.7	356.2	387.5
TOTAL EQUITY AND LIABILITIES	1,700.7	1,470.3	1,637.1

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

	Restricted equity	Non-restricted equity
SEK million	Share capital	Share premium account	Retained earnings	Total
1 January 2023	1,9	478,1	-203,1	276,9
Profit for the period	-	-	2,1	2,1
Total comprehensive income	-	-	2,1	2,1
Dividend, shares			-	-
Total transactions with shareholders, recognised directly in equity	-	-	-	-
31 Mar 2023	1,9	478,1	-201,0	279,0

	Restricted equity	Non-restricted equity
SEK million	Share capital	Share premium account	Retained earnings	Total
1 January 2024	1,9	478,1	-160,2	319,9
Profit for the period	-	-	20,4	20,4
Total comprehensive income	-	-	20,4	20,4
Dividend, shares			-	-
Total transactions with shareholders, recognised directly in equity	-	-	-	-
31 Mar 2024	1,9	478,1	-139,8	340,2

Notes

Note 1 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial statements of the Parent Company have been prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board.

The applied accounting policies are consistent with the policies described in the annual report for the financial year ended 31 December 2023 and should be read in conjunction with these. With the exception of the accounting policies described below, the applied accounting policies are consistent with those described in the NCAB Group's annual report for 2023, which is available on NCAB Group's website.

None of the new IFRS standards, amended standards and interpretations that are applicable as of 1 January 2024 have had any material impact on the financial statements of the Group or the Parent Company. No new or amended standards have been applied prospectively.

Segments are accounted for in a way that is consistent with the internal reports submitted to the chief operating decision maker. The chief operating decision maker is the function that is responsible for allocating resources and assessing the results of segments. In the Group, this function has been identified as the Chief Executive Officer, who makes strategic decisions. The Group's operations are evaluated based on geography. The following four segments have been identified: Nordic, Europe, North America and East.

The interim financial information on pages 1–25 is an integral part of this financial report.

Significant estimates and judgements

For information on significant estimates and judgements made by management in preparing the consolidated financial statements, see Note 4 of the 2023 Annual Report.

Note 2 Information on financial assets and liabilities

For more information on financial assets and liabilities, see the 2023 Annual Report, Note 2. The Group's financial assets and liabilities are measured at amortised cost. There are temporary financial liabilities that are measured at fair value. For acquisitions, the purchase consideration may be determined based on future outcomes in the acquired company. The part of the consideration that is dependent on the future outcome of the acquired company is determined by earnings forecasts and is recognised at fair value. No change in the value took place in the period. The carrying amounts of the Group's financial assets and liabilities are deemed to approximate their fair values. All financial assets are recognised in the category "Financial assets measured at amortised cost". Most of the company's financial liabilities are recognised in the category "Other financial liabilities", and any additional purchase considerations are recognised at fair value.

Note 3 Pledged assets and contingent liabilities

The Group no longer has any material pledged assets or contingent liabilities.

Note 4 Segments

Description of segments and principal activities

In NCAB Group, the CEO is the Group's chief operating decision maker. The segments are based on the information that is handled by the CEO and used as a basis for decisions on the allocation of resources and evaluation of results. NCAB Group has identified four segments, which also constitute reportable segments in the Group's operations:

Nordic

Provides a broad range of PCBs from NCAB Group's companies in Denmark, Finland, Norway, Poland and Sweden. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

Europe

Provides a broad range of PCBs from NCAB Group's companies in Belgium, France, Italy, the Netherlands, North Macedonia, Portugal, Switzerland, Spain, UK and Germany. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

North America

Provides a broad range of PCBs from NCAB Group's companies in the USA. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

East

Provides a broad range of PCBs from NCAB Group's companies in China and Malaysia. The PCBs are purchased from external suppliers, mainly in China. Most of the PCBs are of the High-Mix-Low-Volume (HMLV) type, i.e. specialised products that are produced in small quantities. NCAB Group has a local presence through technicians and customer support staff to ensure that its customers receive support throughout the process.

Revenue

Revenue is generated from a large number of customers across all segments. There are no sales of goods between segments. However, minor amounts may be invoiced between the segments for freight and services, which are provided on market terms.

Quarter	Nordic		Europe		North America		East			Central functions	Group
SEK million	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Net sales	216	286	503	649	191	159	41	52	-	-	951	1,146
EBITA	41	59	77	97	25	26	6	9	-6	-7	143	184
EBITA margin, %	19.2	20.7	15.2	14.9	13.0	16.5	15.1	17.1			15.0	16.0
Amortis. intangible assets											-15	-11
Operating profit											127	173
Operating margin, %											13.4	15.1
Net financial expense											-7	-10
Profit before tax											120	163
Net working capital	101	133	177	295	47	10	31	42	-44	-39	312	441

Sales and earnings of segments, January–March 2024

Sales and earnings of segments, LTM

										Central
LTM	Nordic			Europe	North America		East			functions		Group
SEK million	2024 LTM	2023	2024 LTM	2023	2024 LTM	2023	2024 LTM	2023	2024 LTM	2023	2024 LTM	2023
Net sales	884	954	2,050	2,196	751	719	207	219	0	-	3,892	4,088
EBITA	169	184	300	323	107	109	40	42	-11	-12	606	647
EBITA margin, %	19.2	19.3	14.6	14.7	14.3	15.1	19.1	19.3			15.6	15.8
Amortis. intangible assets											-60	-55
Operating profit											546	591
Operating margin, %											14.0	14.5
Net financial expense											-55	-58
Profit before tax											491	534
Net working capital	101	89	177	167	47	39	31	42	-44	-49	312	288
Fixed assets	20	19	38	35	14	15	7	8	13	14	92	90
Intangible assets	399	402	589	574	565	537	8	8	76	76	1,638	1,597

Note 5

Quarterly summary

	Q1 24	Q4 23	Q3 23	Q2 23	Q1 23	Q4 22	Q3 22	Q2 22	Q1 22
Order intake, SEK million	970	873	924	924	1 030	1 009	1 011	1 036	1 171
Order intake, USD million	93,3	81,6	85,2	87,9	98,7	93,2	94,1	104,9	125,3
Net sales, SEK million	951	879	1 005	1 057	1 146	1 026	1 168	1 122	1 141
SEK annual growth, %	-17,1	-14,4	-13,9	-5,7	0,4	5,1	35,3	47,2	84,9
Net sales, USD million	91,5	82,1	92,6	100,5	109,9	94,4	109,8	114,0	122,1
USD annual growth, %	-16,8	-13,0	-15,6	-11,8	-10,0	-15,2	10,0	25,4	66,2
Gross margin, %	37,6	38,2	36,2	36,4	33,6	34,1	32,2	31,3	30,2
EBITA, SEK million	142,6	119,0	176,0	168,2	183,7	141,0	183,5	160,2	146,3
EBITA margin, %	15,0	13,5	17,5	15,9	16,0	13,7	15,7	14,3	12,8
Operating profit/loss, SEK million	127,4	103,8	160,5	154,5	172,6	129,3	172,3	150,9	93,8
Total assets, SEK million	3 447	3 221	3 415	3 408	3 176	3 041	3 195	3 034	2 733
Cash flow from operating activities, SEK million	92,9	85,5	260,4	152,7	201,9	189,4	212,2	148,2	24,2
Equity/assets ratio, %	43,7	41,5	40,5	37,8	40,9	39,3	35,5	30,6	32,0
Number of employees	607	603	613	614	587	587	578	574	603
Average exchange rate, SEK/USD	10,39	10,67	10,81	10,51	10,42	10,73	10,55	9,83	9,33
Average exchange rate, SEK/EUR	11,49	11,47	11,76	11,43	11,20	10,94	10,63	10,47	10,48

Note 6 Acquisitions

Cumatrix BV

After the quarter end, on 11 April, 100 per cent of shares were acquired in Cumatrix BV, in Lommel, Belgium. Operating profit together with assets and liabilities associated with the acquired company were consolidated from the transaction date. The company reported net sales of SEK 7 million and EBITA of approximately SEK 0.5 million in 2023. The purchase consideration was SEK 5 million. As a result of the acquisition, two new employees joined us in Belgium.

Note 7 Alternative performance measures

Some of the information contained in this report that is used by management and analysts to assess the Group's performance has not been prepared in accordance with IFRS. Management believes that this information helps investors to analyse the Group's financial performance and financial position. Investors should regard this information as complementary rather than as replacing financial reporting in accordance with IFRS.

Gross profit

	Jan-Mar		Jan-Dec
SEK million	2024	2023	LTM	2023
Net sales	950.6	1,146.4	3,892.1	4,087.8
Other operating income	0.3	0.8	26.8	27.3
Cost of goods sold	-593.6	-761.4	-2,459.2	-2,627.0
Translation differences	-	-	6.6	6.6
Revaluation of purchase price	-	-	-23.9	-23.9
Total gross profit	357.3	385.7	1,442.3	1,470.8
Gross margin, %	37.6	33.6	37.1	36.0

EBITA

		Jan-Mar		Jan-Dec
SEK million	2024	2023	LTM	2023
Operating profit	127.4	172.6	546.2	591.4
Amortisation and impairment of intangible assets	15.2	11.1	59.6	55.5
EBITA	142.6	183.7	605.7	646.9
EBITA margin, %	15.0	16.0	15.6	15.8

EBITDA

		Jan-Mar		Jan-Dec
SEK million	2024	2023	LTM	2023
Operating profit	127.4	172.6	546.2	591.4
Depreciation, amortisation and impairment of property, plant and equipment, and intangible assets	25.2	21.1	102.8	98.6
EBITDA	152.6	193.7	649.0	690.0
EBITDA margin, %	16.1	16.9	16.7	16.9

Return on equity

SEK million	Mar 2024	Mar 2023	Dec 2023
Profit for the period — LTM	368.7	476.0	403.9
Equity (average)	1,403.0	1,086.4	1,265.6
Return on equity, %	26.3	43.8	31.9

Net working capital and capital employed

SEK million	31 Mar 2024	31 Mar 2023	31 Dec 2023
Inventories	267.7	400.1	315.2
Trade receivables	769.6	869.3	655.0
Other current receivables	33.1	36.1	31.8
Prepaid expenses and accrued income	29.4	27.8	25.0
Trade payables	-479.8	-515.9	-445.0
Current tax liabilities	-88.0	-135.8	-81.7
Other current liabilities	-97.5	-120.3	-80.7
Accrued expenses and deferred income	-122.6	-120.2	-131.2
Net working capital	311.9	441.0	288.4
Non-current assets	1,757.8	1,371.6	1,715.7
Likvida medel	589.0	471.7	478.6
Deferred tax	-78.8	-65.6	-76.9
Capital employed	2,579.9	2,218.7	2,405.8

Return on capital employed

SEK million	Mar 2024	Mar 2023	Dec 2023
Operating profit/loss — LTM	546.2	625.2	591.4
Capital employed (average)	2,399.3	2,017.8	2,262.6
Return on capital employed, %	22.8	31.0	26.1

Equity/assets ratio

SEK million	31 Mar 2024	31 Mar 2023	31 Dec 2023
Equity	1,506.9	1,299.2	1,335.3
Total	1,506.9	1,299.2	1,335.3
Total assets	3,446.6	3,176.5	3,221.3
Equity/assets ratio, %	43.7	40.9	41.5

Net debt

SEK million	31 Mar 2024	31 Mar 2023	31 Dec 2023
Interest-bearing liabilities	1,073.0	919.5	1,070.5
Cash and cash equivalents	-589.0	-471.7	-478.6
Total net debt	484.0	447.8	591.9
EBITDA LTM	649.0	707.3	690.0
Net debt / EBITDA	0.7	0.6	0.9

Net debt excl. IFRS 16 adjustment

SEK million	31 Mar 2024	31 Mar 2023	31 Dec 2023
Interest-bearing liabilities excl IFRS 16	995.7	834.4	995.3
Cash and cash equivalents	-589.0	-471.7	-478.6
Total net debt excl IFRS16	406.7	362.6	516.7
EBITDA LTM excl IFRS 16	611.3	674.7	652.9
Net debt excl IFRS 16/ EBITDA excl IFRS 16	0.7	0.5	0.8

Alternative	Definition	Purpose
performance measure
Gross profit	Net sales less raw materials and consumables and with the addition of other operating income, which includes translation differences on trade receivables and trade payables, but does not include other operating income pertaining to the remeasurement of acquisition price at fair value	Gross profit provides an indication of the surplus that is needed to cover fixed and semi fixed costs in the NCAB Group
Gross margin	Gross profit divided by net sales	The gross margin provides an indication of the surplus as a percentage of net sales that is needed to cover fixed and semi-fixed costs in the NCAB Group
EBITDA	Operating profit before depreciation, amortisation and impairment of property, plant and equipment, and intangible assets	EBITDA along with EBITA provide an overall picture of operating earnings
Adjusted EBITDA	Operating profit before depreciation, amortisation and impairment of property, plant and equipment, and intangible assets adjusted for non-recurring items	Adjusted EBITDA is adjusted for extraordinary items. NCAB Group therefore considers that it is a useful performance measure for showing the company's operating earnings
EBITA	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets	EBITA provides an overall picture of operating earnings
Adjusted EBITA	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets adjusted for non recurring items	Adjusted EBITA is adjusted for non-recurring items. NCAB Group therefore considers that it is a useful performance measure for showing the company's operating earnings
Adjusted EBITA margin	Operating profit before amortisation and impairment of goodwill and acquisition related intangible assets adjusted for non recurring items, divided by net sales	Adjusted EBITA margin is adjusted for non recurring items. NCAB Group therefore considers that it is a useful performance measure for comparing the company's margin with other companies regardless of whether the business is driven by acquisitions or organic growth
Return on equity	Profit/loss for the past 12 months divided by average equity	Return on equity is used to analyse the company's profitability, based on how much equity is used
Net working capital	Current assets excluding cash and cash equivalents less non-interest-bearing current liabilities	This measure shows how much working capital is tied up in the business
Capital employed	Equity and interest-bearing liabilities	Capital from external parties
Return on capital employed	Profit/loss for the past 12 months divided by average capital employed	Return on capital employed is used to analyse the company's profitability, based on how much equity is used
Equity/assets ratio	Equity and untaxed reserves net of deferred tax, divided by total assets	NCAB Group considers that this is a useful measure for showing what portion of total assets is financed by equity. It is used by management to monitor the Group's long-term financial position
Net debt	Interest-bearing liabilities less cash and cash equivalents	Net debt is a measure which shows the company's total indebtedness
Net debt excl. IFRS 16 adjustment	Interest-bearing liabilities excluding liabilities for right-of-use assets less cash and cash equivalents	Net debt is a measure which shows the company's total indebtedness and has been adjusted for IFRS 16. Used in covenant calculations to the bank.
EBITDA excl. IFRS	EBITDA adjusted for lease expenses pertaining to assets classified as right-of-use assets	EBITDA along with EBITA provide an overall picture of operating earnings Used in covenant calculations to the bank.
Book to bill	Order intake for the period divided by net sales for the period	This provides a picture of how the order backlog changes over the period regardless of the effects of acquisitions or currency

ABOUT NCAB

A leading supplier of PCBs

NCAB is one of the world's leading suppliers of printed circuit boards (PCBs) with some 3,650 customers worldwide. It is important to achieve scale benefits, which is why NCAB has a strong focus on growth. NCAB is the leader in terms of expertise, service, sustainability and technology. Being the leading player also gives the strength to attract customers through important projects, skilled employees and the best factories.

NCAB works in deep relationships with its customers, where NCAB takes responsibility for the entire delivery so customers can focus on their manufacturing operations. NCAB does not own any factories, but because of its Factory Management team NCAB does "own" the most important element – the relationship with the factories and the entire manufacturing process, which

provides access to state-of-the-art technology and limitless capacity without the need for investments.

BUSINESS CONCEPT

PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost.

VISION

The Number 1 PCB producer – wherever we are.

FINANCIAL TARGETS

• Net sales of SEK 8 billion in 2026, achieved by approximately equal part organic and acquired growth.
• EBITA of SEK 1 billion in 2026.
• Net debt less than 2x EBITDA (unchanged from before).
• Dividend based on available cash flow amounting to approximately 50 per cent of net profit (unchanged from before).